4D. Issue of redeemable preference shares.- (1) On and after the commencement of the State Financial Corporations (Amendment) Act, 2000, the Financial Corporation may-
(a) issue redeemable preference shares on such terms and in such manner as the Board may decide; and
(b) convert, such number of equity shares as it may decide into redeemable preference shares, with the prior approval of the State Government and the Small Industries Bank, by a resolution passed in the general meeting of the shareholders:
Provided that such conversion shall in no case reduce the equity shares held by the parties referred to in clauses (a), (b) and (c) of sub-section (3) of section 4 to less than fifty-one per cent. of the issued equity capital of the Financial Corporation
(2) The redeemable preference shares referred to in sub-section (1) shall-
(a) carry such fixed rate of dividend as the Financial Corporation may specify at the time of such issue or conversion; and
(b) neither be transferable nor carry any voting rights.
(3) The redeemable preference shares referred to in sub-section (1) shall be redeemed by the Financial Corporation in such instalments and in such manner as the Board may determine. *[Inserted vide State Financial Corporations Amendment Act, 2000, section 6]
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