Application of the Companies Act, 1956

Application of the Companies Act, 1956 -

1. (I) Notwithstanding anything contained in the Companies Act, 1956, or in the memorandum or articles of Association of either of the tea companies, so long as management of the tea units remain vested in the State Government,-

1. (a) it shall not be lawful for the shareholders of either of the tea companies or any person to nominate or appoint any person for the management of the tea units ;
2. (b) no resolution passed at any meeting of the share holders of either of the tea companies in relation to a tea unit concerned on or after the appointed day shall be given effect to unless approved by the StateGovernment.

1. (2) Subject to the provisions contained in sub-section (I), and to the other provisions contained in this Act the Companies Act, 1956, shall continue to apply to the tea companies in relation to the respective tea units only in the same manner as it applied thereto before the appointed day.
2. (3) The provisions of this Act shall not be in derogation to the provisions of the Tea Act, 1953 or any other central law relating to Tea Industry and nothing contained in this Act shall exempt any person or body of persons, who may, for the time being, be entrusted with the management of a Tea Unit under this Act from the operation of the provisions of any such Central Law.