Notwithstanding anything to the contrary contained in 1[sections 76 and 79 of the Companies Act, 1956 (1 of 1956)], no banking company shall pay out directly or indirectly by way of commission, brokerage, discount or remuneration in any form in respect of any shares issued by it, any amount exceeding in the aggregate two and one-half per cent. of the 2[price at which the said shares are issued].
3[Explanation.
For the removal of doubts, it is hereby declared that the expression "price at which the said shares are issued" shall include amount or value of premium on such shares.]
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1. Subs. by Act 95 of 1956, s. 14 and Sch. I, for "sections 105 and 105A of the Indian Companies Act, 1913 (7 of 1913) (w.e.f. 14-1-1957).
2. Subs. by Act 4 of 2013, s. 5, for "paid-up value of the said shares" (w.e.f. 18-1-2013).
3. Ins. by s. 5, ibid. (w.e.f. 18-1-2013).
Section 3 Act not to apply to certain co-operative societies
Section 4 Power to suspend operation of Act
Section 5A Act to override memorandum, articles, etc
Section 6 Forms of business in which banking companies may engage
Section 7 Use of words bank, banker, banking or banking company
Section 8 Prohibition of trading
Section 9 Disposal of non-banking assets
Section 10A Board of directors to include persons with professional or other experience
Section 10B Banking company to be managed by whole time chairman
Section 11 Requirement as to minimum paid-up capital and reserves
Section 12A Election of new directors
Section 12B Regulation of acquisition of shares or voting rights
Section 13 Restriction on commission, brokerage, discount, etc., on sale of shares