10. Management, etc., of the undertakings of the Company.—(1) The general superintendence,
direction, control and management of the affairs and business of the undertakings owned by the
Company, the right, title and interest in relation to which have vested in the Central Government under
section 3, shall,—
(a) where a direction has been made by the Central Government under sub-section (1) of
section 5, vest, on and from the date, specified in such direction, in the existing Government company
specified therein; or
(b) where a declaration has been made under sub-section (1) of section 6, vest, on and from the
date of such declaration, in the new Government company specified therein; or
(c) where no direction referred to in clause (a) or declaration referred to in clause (b) has been
made, vest, on and from the appointed day, in one or more Custodians appointed by the Central
Government under sub-section (2),
and thereupon the existing, or new, Government company or the Custodian or Custodians so appointed,
as the case may be, shall be entitled to exercise, to the exclusion of all other persons, all such powers and
do all such things as the Company is authorised to exercise and do in relation to the undertakings owned
by it.
(2) The Central Government may appoint one or more individuals or a Government company as the
Custodian or Custodians of the undertakings of the Company in relation to which no direction has been
made by it under sub-section (1) of section 5 or no declaration has been made by it under sub-section (1)
of section 6, and the Custodian or Custodians so appointed shall receive, from the funds of the
undertakings, such remuneration as may be specified by the Central Government.
(3) The Custodian or Custodians of the undertakings of the Company shall maintain an account of the
undertakings of the Company in such form and manner and under such conditions as may be prescribed,
and the provisions of the Companies Act, 1956 (1 of 1956), shall apply to the audit of the accounts so
maintained as they apply to the audit of the accounts of a company.
7
11. Duty of persons in charge of management of the undertakings of the Company to deliver all
assets, etc.—(1) On the vesting of the management of the undertakings of the Company in an existing, or
a new, Government company or on the appointment of a Custodian or Custodians, all persons in charge of
the management of the undertakings of the Company immediately before such vesting or appointment
shall be bound to deliver to such Government company, or the Custodian or Custodians, as the case may
be, all assets, books of account, registers and other documents in their custody relating to the undertakings
of the Company.
(2) The Central Government may issue such directions as it may deem desirable in the circumstances
of the case to the existing, or new, Government company or the Custodian or Custodians, and such
Government company, Custodian or Custodians may also, if it is considered necessary so to do, apply to
the Central Government at any time for instructions as to the manner in which the management of the
undertakings of the Company shall be conducted or in relation to any other matter arising in the course of
such management.
12. Duty of persons to account for assets, etc., in their possession.—(1) Any person who has, on
the appointed day, in his possession or under his control, any assets, books, documents or other papers
relating to any undertaking owned by the Company, which has vested in the Central Government or in an
existing, or a new, Government company under this Act, and which belongs to the Company, or would
have so belonged, if the undertakings owned by the Company had not vested in the Central Government
or such Government company, shall be liable to account for the said assets, books, documents and other
papers to the Central Government or the Government company and shall deliver them up to the Central
Government or such Government company or to such person or body of persons as the Central
Government or the Government company may specify in this behalf.
(2) The Central Government may take or cause to be taken all necessary steps for securing possession
of the undertakings of the Company which have vested in it under section 3.
(3) The Company shall, within such period as the Central Government may allow in this behalf,
furnish to that Government a complete inventory of all its property and assets, as on the appointed day,
pertaining to the undertakings which have vested in the Central Government under section 3, and, for this
purpose, the Central Government or the existing, or new, Government company shall afford to the
Company all reasonable facilities.