Authorised share capital of the Federation will be Rs. 5.00 crores divided into 50,000 shares of Rs.1000/-each.
Each cooperative sugar factory in U.P. has been registered under the U.P. Cooperative Societies Act, 1965 and granted a Letter of Intent by the Government of India, shall purchase at least one share subject to the maximum as laid down hereunder :
Each cooperative sugar factory in U.P. which is in operation on the date of commencement of these bye-laws, may purchase to a maximum of five fully paid up shares for each one lakh quintal of sugar cane crushed or part there of, calculated on the basis of its average cane crushed during the past three seasons.
Each cooperative sugar factory which is commissioned after the commencement of these bye-laws, may purchase maximum five shares for each one lakh quintal or part thereof, the sugarcane crushed calculated on the basis of their crush in the 1st and 2nd season with adjustment in the third season according to triennial average Provided that the share initially purchased before its commissioning shall be reckoned in determining the total number of shares to be purchased.
The share purchased by the State Govt. shall be fully Paid up.
Without prejudice to the provisions for liabilities under section 25 and for charge and set off under section 41, the Federation may redeem the shares held by the State Government. Provided that no redemption of share shall be made without the concurrence of the State Government.
A share certificate bearing distinctive number shall be issued for every share subscribed, to be signed by a member of the committee of Managing Director of the Federation with the seal of the Federation affixed thereto.
In case of loss or destruction of the certificate, its duplicate may be obtained on payment of Rs. 2/-only.