Section 30: Composite enterprises and organisations

30. Composite enterprises and organisations.—(1) Where a managed establishment owned by a company is engaged in a business not directly related to the manufacture of hydrogenated vegetable oil, the Managing Director shall prepare, as soon as possible, a plan for separation of the business relating to manufacture of hydrogenated oil from other business. The plan shall include provision for separation of physical assets, and apportionment of assets and liabilities, including the apportionment of paid up capital on a pro rata basis between the respective business. The Managing Director in preparing the plan shall follow the provisions of the Companies Act, 1913 (VII of 1913), to the extent it is not inconsistent with provision of this Act. (2) The Managing Director shall submit the plan for approval to the Federal Government which shall publish the plan in the official Gazette to ascertain the views of the shareholders of the company within a specified period. (3) The Federal Government shall, after considering the views of the shareholders, decide whether the business not directly related to the manufacture of hydrogenated vegetable oil and the assets and liabilities of such business should be retained in the managed establishment or whether such business and assets and liabilities should be returned to the previous management; and the decision of the Federal Government shall be final. (4) Where the Federal Government decides to return to the previous management the business not directly related to the manufacture of hydrogenated vegetable oil and the previous management fails, for any reason whatsoever, to accept the said business within a specified period of time, the Federal Government may, in its discretion, either retain the business within the managed establishment or dispose of the business, along with the assets and liabilities apportioned as relating thereto, in such manner as the Federal Government may deem fit.

Effective date: 1973-01-01

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