Chapter II Chapter II

The State aid to Industries Board

1. (1) There shall be constituted a State aid to Industries Board consisting of the following members, namely.,
   • (a) The Director of Industries and Commerce, ex officio;
   • (b) An officer of the Finance Department of the Government Secretariat not below the rank of a Joint Secretary to be nominated by the Government,
   • (c) An officer of the Industries Department of the Government Secretariat not below the rank of a Deputy Secretary to be nominated by the Government;
   • (d) Three members to be elected by the members of the Kerala Legislative Assembly from among themselves in accordance with the system of proportional representation by means of the single transferable vote;
   • (e) Three members representing industrial and commercial interests to be nominated by the Government,
   • (f) Two members representing organised trade unions to be nominated by the Government, and
   • (g) One member representing economists or statisticians to be nominated by the Government.
2. (2) The Director of Industries and Commerce shall be the Chairman of the Board.
3. (3) The nomination, election, resignation or removal of the members of the Board shall be notified by the Government in the Gazette.
4. (4) The Board shall assist the Government in dealing with applications for the grant of State aid under this Act.
5. (5) All questions at a meeting of the Board shall be decided by the votes of the majority of the members present and voting.
6. (6) No member shall vote on or take part in the discussion of any question coming up for consideration at a meeting of the Board if the question is one in which he has any direct or indirect pecuniary interest by himself or his partner or in which he is interested professionally on behalf of a client or as agent for any person other than the Government or a local authority.
7. (7) No proceedings of the Board shall be deemed to be invalid on account of any defect or irregularity in the Constitution of the Board or any vacancy thereof.

Subject to the provisions of this Act every member of the Board other than the Ex officio member shall hold office for a period of three years from the date of the first meeting of the Board but shall be eligible for re-nomination or re-election, as the case may be: Provided that a member whose term of office has expired shall continue to hold office until his successor assumes office: Provided further that a member nominated or elected under sub-section

1. (1) of section 3 shall cease to be a member of the Board,
   • (i) in the case of a member nominated under clause
   • (b) or clause
   • (c) of sub-section
2. (1) of section 3, when he ceases to be an officer of the Finance Department or the Industries Department as the case may be;
   • (ii) in the case of a member elected under clause
   • (d) of sub-section
3. (1) of section 3, when he ceases to be a member of the Legislative Assembly; and
   • (iii) in the case of a member nominated under clause
   • (e) or clause
   • (f) or clause
   • (g) of sub-section
4. (1) of section 3, in the opinion of the Government, when he ceases to have the representative capacity specified in the said respective clauses, but the member shall continue to hold office until the vacancy is filled up: Provided also that a member nominated or elected to fill a casual vacancy shall assume office forthwith, but shall hold office so long only as the member in whose place he is nominated or elected as the case may be, would have been entitled to hold office if the vacancy had not occurred.

Any member of the Board other than the ex officio member may resign by tendering his resignation in writing to the Government and, on such resignation being accepted by the Government, shall be deemed to have vacated office.

1. (1) The Government may remove from office any member of the Board other than the ex officio member if he,
   • (a) becomes subject to any physical or mental disability, which, in the opinion of the Government renders him unfit to be a member of the Board, or
   • (b) is convicted of any such offence or is subjected by any Criminal Court to any such order as in the opinion of the Government implies a defect of character which renders him unfit to continue as a member of the Board, or
   • (c) without excuse sufficient in the opinion of the Board, absents himself without the consent of the Board from more than three consecutive meetings of the Board, or
   • (d) contravenes the provisions of sub-section
2. (6) of section 3 :

Filling up of vacancies When the office of any member of the Board becomes vacant by the expiration of his term, resignation, removal or death, a new member shall be nominated or elected, as the case may be, to fill the vacancy.

1. (1) The Chairman shall preside at the meetings of the Board and shall have and exercise a second or casting vote in the case of an equality of votes.
2. (2) In the absence of the Chairman, an officer of the Government in the Board, shall preside and he shall while so presiding, have all the powers of the Chairman.
3. (3) No business shall be transacted at any meeting of the Board unless one-half of the sanctioned number of members of the Board are present at the meeting.

If, in the opinion of the Government, the Board persistently makes default in the performance of the duties imposed on it, or exceeds or abuses its powers, the Government may, by notification in the Gazette, dissolve the Board and thereupon the Chairman and the other members of the Board shall be deemed to have vacated their offices and all the functions of the Board shall thereafter be exercised by such person or persons as may be appointed in that behalf by the Government until a new Board is constituted by the Government :

Industries which may be aided

1. (1) The industries to which aid may be given under this Act shall be such as have an important bearing on the economic development of the country and shall be,
   • (i) a new or nascent industry ;
   • (ii) an industry to be newly established in an area where such industries are undeveloped or are likely to be successful ;
   • (iii) an industry which is likely to become more profitable by an investment of more capital ;
   • (iv) small scale industries ;
   • (v) cottage industries ;
   • (vi) old or established industries ; or
   • (vii) such other industrial concerns, as in the opinion of the Government, deserve State aid to be given in conformity with the provisions of this Act : Provided that no State aid shall be given to any joint stock company unless,
   • (i) the company is registered in India with a rupee capital, and
   • (ii) the company agrees to maintain the prescribed proportion of Indians as members of its Board of Directors : Provided further that every recipient of State aid shall make such provision for the training of apprentices as may be prescribed.
2. (2) The decision of the Government after consulting the Board as to whether the conditions of this section are fulfilled shall be final and shall not be called in question in any court of law.