Shares to be issued by the State Textile Corporation for the value of the assets transferred to it by State Government

(1) An amount equal to the value of the assets of a sick textile undertaking transferred to, and vested in, the State Textile Corporation under sub-section (2) of section 3, shall be deemed to be the contribution made by the State Government to the equity capital of the State Textile Corporation; and for the contribution so made, the State Textile Corporation shall issue (if necessary after amending its memorandum and articles of association) to the State Government paid-up shares, in its equity capital, having a face value equal to the amount specified against the sick textile undertaking in the corresponding entry in column (4) of the First Schedule. (2) Where any liability is assumed by the State Government under sub section (1) of section 25, they may call upon the State Textile Corporation to issue (if necessary after amending the memorandum and articles of association of the Corporation) to the State Government additional paid-up shares. In its equity capital, having a face value equal to the amount of the liability assumed by the State Government under the said sub-section.