THE FOOD CORPORATIONS ACT, 1964 

_________ 

ARRANGEMENT OF SECTIONS 

__________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1. Short title, extent and commencement. 

2. Definitions. 

CHAPTER II 

THE FOOD CORPORATION OF INDIA 

3. Establishment of Food Corporation of India. 

4. Offices and agencies. 

5. Capital of Corporation. 

6. Management. 

7. Board of directors. 

8. Disqualification for office of director. 

9. Removal and resignation of directors. 

10. Meetings. 

11. Advisory Committees. 

12. Officers and other employees of Corporation. 

12A. Special provisions for transfer of Government employees to the Corporation in certain cases. 

13. Functions of Corporation. 

14. Executive Committee and other commodities. 

15. Member of board or committee thereof not to vote in certain cases. 

CHAPTER III 

BOARDS OF MANAGEMENT 

16. Boards of Management, their constitution and functions. 

CHAPTER IV 

STATE FOOD CORPORATIONS 

17. Establishment of State Food Corporation. 

18. Capital of State Food Corporation. 

19. Management of State Food Corporation. 

20. Disqualification for office of member of board of directors. 

21. Removal and resignation of members of board of directors. 

22. Meetings. 

23. Appointment of officers, etc. and their conditions of service. 

1 

 
SECTIONS 

24. Executive Committee and other committees. 

25. Member of board or committee thereof not to vote in certain cases. 

CHAPTER V 
FINANCE, ACCOUNTS AND AUDIT 
26. Submission of programme of activities and financial estimates. 
27. Borrowing powers of Food Corporation. 
 28. Lending by Food Corporation on security of foodgrains. 
29. Power to enter into agreement for purchase of foodgrains after harvest. 
30. Guarantee by Food Corporation. 
31. Funds of Food Corporation. 
32. Investment of funds. 
33. Allocation of surplus profits. 
34. Accounts and audit. 
35. Annual report on the working of Food Corporations. 

CHAPTER VI 
MISCELLANEOUS 

36. Vacancies, etc., not to invalidate acts or proceedings of Food Corporation, etc. 
37. Delegation. 
38. Declaration of fidelity and secrecy. 
39. Indemnity of directors. 
40. Protection of action taken under this Act. 
41. Offences. 
42. Provision relating to income-tax, super-tax, etc. 
43. Winding up of Food Corporation. 
44. Power to make rules. 
45. Power of Food Corporation to make regulations. 
 46. Validation. 
       THE SCHEDULE.

2 

THE FOOD CORPORATIONS ACT, 1964 

ACT NO. 37 OF 1964 

An  Act  to  provide  for  the  establishment  of  Food  Corporations  for  the  purpose  of  trading  in    
foodgrains and other foodstuffs and for matters connected therewith and incidental thereto. 

BE it enacted by Parliament in the Fifteenth Year of the Republic of India as follows:— 

[10th December, 1964.] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Food Corporations Act, 

1964. 

(2) It extends to the whole of India 1***. 

(3)  It  shall  come  into  force  on  such  date2  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Corporation” means the Food Corporation of India established under section 3; 

(b)  “Food  Corporation”  means  the  Food  Corporation  of  India  established  under  section  3  or  a 

State Food Corporation established under section 17; 

3[(bb) “foodstuffs” includes edible oilseeds and oils;] 

(c) “prescribed” means prescribed by rules made under this Act; 

(d)  “scheduled  bank”  means  a  bank  for  the  time  being  included  in  the  Second  Schedule  to  the 

Reserve Bank of India Act, 1934 (2 of 1934); 

(e) “State Food Corporation” means a State Food Corporation established under section 17; 

(f) “year” means the financial year. 

CHAPTER II 

THE FOOD CORPORATION OF INDIA 

 3.  Establishment  of  Food  Corporation  of  India.—(1)  With  effect  from  such  date  as  the  Central 
Government may, by notification in the Official Gazette, specify in this behalf, the Central Government 
shall establish for the purposes of this Act a Corporation known as the Food Corporation of India. 

(2) The Corporation shall be  a body corporate with the name aforesaid having perpetual succession 
and  a  common  seal  with  power,  subject  to  the  provisions  of  this  Act,  to  acquire,  hold  and  dispose  of 
property and to contract, and may, by that name, sue and be sued. 

4. Offices and agencies.—(1) The head office of the Corporation shall be at Madras or at such other 

place as the Central Government may, by notification in the Official Gazette, specify. 

4[(2) The Corporation may establish offices or agencies at other places in or outside India: 

Provided  that  no  such  office  or  agency  shall  be  established  at  any  place  outside  India  without  the 

previous approval of the Central Government.] 

1. The words “except the State of Jammu and Kashmir” omitted by Act 67 of 1972, s. 2 (w.e.f. 15-12-1972). 
2. 17th December, 1964, vide notification No. G.S.R. 1808, dated 16th December, 1964, see Gazette of India, Extraordinary,  
    Part II, sec. 3 (i). 
3. Ins. by s. Act 67 of 1972, s. 3 (w.e.f. 15-12-1972).  
4. Subs. by s. 4, ibid., for sub-section (2) (w.e.f. 15-12-1972). 

3 

                                                           
 5.  Capital  of  Corporation.—(1)  The  original  capital  of  the  Corporation  shall  be  such  sum  not 

exceeding one hundred crores of rupees as the Central Government may fix. 

(2) The Central Government may from time to time increase the capital of the Corporation to such 

extent and in such manner as that Government may determine. 

(3)  Such  capital  may  be  provided  by  the  Central  Government  from  time  to  time  after  due 
appropriation made by Parliament by law for the purpose and subject to such terms and conditions as may 
be determined by that Government. 

6.  Management.—(1)  The  general  superintendence,  direction  and  management  of  the  affairs  and 
business of the Corporation shall vest in a board of directors which may exercise all such powers and do 
all such acts and things as may be exercised or done by the Corporation under this Act. 

(2) The board of directors, in discharging its functions, shall act on business principles having regard 
to  the interests  of the  producer  and  consumer  and  shall  be  guided  by  such  instructions  on  questions  of 
policy as may be given to it by the Central Government. 

(3) If any doubt arises as to whether a question is or is not a question of policy, the decision of the 

Central Government thereon shall be final. 

7. Board of directors.—(1) The board of directors of the Corporation shall consist of the following, 

namely:— 

(a) a Chairman; 

(b)  three  directors  to  represent  respectively  the  Ministries  of  the  Central  Government  dealing 

with— 

(i) food, 

(ii) finance, and 

(iii) co-operation; 

(c) the managing director of the Central Warehousing Corporation established under section 3 of 

the Warehousing Corporations Act, 1962 (8 of 1962), ex officio; 

(d) a managing director; 

(e) six other directors. 

(2)  All  the  directors  of  the  Corporation  other  than  the  director  referred  to  in  clause  (c)  of                         

sub-section (1) shall be appointed by the Central Government. 

(3) The managing director, shall— 

(a)  exercise  such  powers  and  perform  such  duties  as  the  board  of  directors  may  entrust  or 

delegate to him; and 

(b)  receive  such  salary  and  allowances  as  the  board  of  directors  may,  with  the  approval  of  the 

Central Government, fix: 

Provided  that  the  first  managing  director  shall  receive  such  salary  and  allowances  as  the  Central 

Government may fix. 

(4)  The  term  of  office  of,  and  the  manner  of  filling  casual  vacancies  among,  the  directors  of  the 
Corporation, other than the director referred to in  clause (c) of sub-section (1), and the other terms and 
conditions  of  appointment  of  the  directors  of  the  Corporation  shall,  subject  to  the  provisions  of                   
sub-section (3), be such as may be prescribed. 

8.  Disqualification  for  office  of  director.—A  person  shall  be  disqualified  for  being  appointed  as, 

and for being, a director of the Corporation— 

(a) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts 

or has compounded with his creditors; or 

4 

(b) if he is of unsound mind and stands so declared by a competent court; or 

(c) if he is or has been convicted of any offence which in the opinion of the Central Government 

involves moral turpitude; or 

(d)  if  he  has  been  removed  or  dismissed  from  the  service  of  the  Government  or  a  corporation 

owned or controlled by the Government; or 

(e) except in the case of the Chairman or the managing director, if he is a salaried official of the 

Food Corporation of India or a State Food Corporation. 

9.  Removal  and  resignation  of  directors.—(1)  The  Central  Government  may,  at  any  time,  after 
consultation  with  the  Corporation,  remove  the  managing  director  from  office  after  giving  him  a 
reasonable opportunity of showing cause against the proposed removal. 

(2) The board of directors may remove any director from office who— 

(a) is or has become subject to any of the disqualifications mentioned in section 8; or 

(b) is absent without leave of the board of directors from more than three consecutive meetings 

thereof without cause sufficient, in the opinion of the board, to exonerate his absence. 

(3)  A  director  of  the  Corporation  may  resign  his  office  by  giving  notice  thereof  in  writing  to  the 
Central  Government  and  on  such  resignation  being  accepted,  he  shall  be  deemed  to  have  vacated  his 
office. 

10. Meetings.—(1) The board of directors of the Corporation shall meet at such times and places and 
shall observe such rules of procedure in regard to the transaction of business at its meetings (including the 
quorum at meetings) as may be provided by regulations made by the Corporation under this Act. 

(2) The  Chairman  of  the Board  or, if  for  any  reason  he  is  unable  to  attend  any  meeting,  any  other 

director elected by the directors present at the meeting, shall preside at the meeting. 

(3) All questions which come up before any meeting of the board shall be decided by a majority of 
the votes of the directors present and voting, and, in the event of an equality of votes, the Chairman, or in 
his absence, the person presiding, shall have and exercise a second or casting vote. 

11. Advisory Committees.—(1) The Central Government may, in consultation with the Corporation, 
by  notification in  the  Official  Gazette,  constitute  one or  more  Advisory  Committees  consisting  of  such 
persons and on such terms and conditions as may be prescribed. 

(2)  It  shall  be  the  duty  of  any  such  Advisory  Committee  to  advice  the  Central  Government  or  the 
Corporation in regard to any matter connected with the purposes of this Act in respect of which its advice 
is sought by the Central Government, or, as the case may be, by the Corporation. 

(3) The expenses in relation to the Advisory Committees shall be met by the Corporation. 

12.  Officers  and  other  employees  of  Corporation.—(1)  The  Central  Government  shall  after 

consultation with the Corporation, appoint a person to be the Secretary of the Corporation. 

(2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation 
may appoint such other officers and employees as it considers necessary for the efficient performance of 
its functions. 

(3) The methods of appointment, the conditions of service and the scales of pay of the officers and 

other employees of the Corporation shall— 

(a) as respects the Secretary, be such as may be prescribed; 

5 

(b)  as  respects  the  other  officers  and  employees,  be  such  as  may  be  determined  by  regulations 

made by the Corporation under this Act. 

1[12A. Special provisions for transfer of Government employees to the Corporation in certain 
cases.—(1) Where the Central Government has ceased or ceases to perform any functions which under 
section 13 are functions of the Corporation, it shall be lawful for the Central Government to transfer, by 
order and with effect from such date or dates (which may be either retrospective to any date not earlier 
than the 1st January, 1965, or prospective) as may be specified in the order, to the Corporation any of the 
officers or employees serving in the Department of the Central Government dealing with food or any of 
its subordinate or attached offices and engaged in the performance of those functions: 

Provided that no order under this sub-section shall be made in relation to any officer or employee in 
such Department or office who has, in respect of the proposal of the Central Government to transfer such 
officer or employee to the Corporation, intimated within such time as may be specified in this behalf by 
that Government, his intention of not becoming an employee of the Corporation. 

(2) In  making an order under sub-section (1), the Central Government shall, as far as may be, take 
into consideration the functions which the Central Government has ceased or ceases to perform and the 
areas in which such functions have been or are performed. 

(3)  An  officer  or  other  employee  transferred  by  an  order  made  under  sub-section  (1)  shall,  on  and 
from the date of transfer, cease to be an employee of the Central Government and become an employee of 
the  Corporation  with  such  designation  as  the  Corporation  may  determine  and  shall, 2[subject  to  the 
provisions of sub-sections (4), (4A), (4B), (4C), (5) and (6)], be governed by the regulations made by the 
Corporation  under this  Act  as  respects remuneration  and  other conditions  of  service  including  pension, 
leave and provident fund, and shall continue to be an officer or employee of the Corporation unless and 
until his employment is terminated by the Corporation. 

(4) Every officer or other employee transferred by an order made under sub-section (1) shall, within 

six months from the date of transfer, exercise his option in writing to be governed,— 

(a)  by  the  scale  of  pay  applicable  to  the  post  held  by  him  under  the  Government  immediately 
before the date of transfer or by the scale of pay applicable to the post under the Corporation to which 
he is transferred, 

(b) by the leave, provident fund, retirement or other terminal benefits admissible to employees of 
the  Central  Government  in  accordance  with  the  rules  and  others  of  the  Central  Government  as 
amended from time to time or the leave, provident fund or other terminal benefits admissible to the 
employees of the Corporation under the regulations made by the Corporation under this Act, 

and such option once exercised shall be final: 

Provided that the option exercised under clause (a) shall be applicable only in respect of the post to 
which  such  officer  or  employee  is  transferred  to  the  Corporation  and  on  appointment  to  a  higher  post 
under the Corporation, he shall be eligible only for the scale of pay applicable to such higher post: 

Provided further that if immediately before the date of his transfer any such officer or employee is 
officiating in a higher post under the Government either in a leave vacancy or in any other vacancy of a 
specified duration, his pay, on transfer, shall be protected for the unexpired period of such vacancy and 
thereafter he shall be entitled to the scale of pay applicable to the post under the Government to which he 
would  have  reverted  or to the  scale  of  pay  applicable  to  the  post  under the  Corporation  to  which he  is 
transferred, whichever he may opt: 

Provided also that when an officer or other employee serving in the Department of the Ministry of the 
Central  Government  dealing  with  food  or  in  any  of  its  attached  or  subordinate  offices  is  promoted  to 
officiate in a higher post in the Department or office subsequent to the transfer to the Corporation of any 
other officer or employee senior to him in that Department or office before such transfer, the officer or 
other employee who is promoted to officiate in such higher post shall, on transfer to the Corporation, be 

1. Ins. by Act 57 of 1968, s. 2 (w.e.f 28-12-1968).  
2. Subs. by Act 12 of 1977, s. 2, for “subject to the provisions of sub-sections (4), (5) and (6)” (w.e.f. 31-12-1976).  

6 

                                                           
entitled only to the scale of pay applicable to the post he would have held but for such promotion or the 
scale of pay applicable to the post under the Corporation to which he is transferred, whichever he may 
opt. 

1[(4A) Notwithstanding anything contained in sub-section (4),— 

(a) every officer or other employee in respect of whom an order of transfer under sub-section (1) 
had been made before the date of commencement of the Food Corporations (Amendment) Act, 1977 
(hereafter in this section referred to as the appointed day) shall, whether or not he had exercised the 
option under sub-section (4) before the appointed day, exercise such option within six months from 
the appointed day; and 

(b) every officer or other employee in respect of whom an order of transfer under sub-section (1) 
may be made after the appointed day shall, within six months from the date of such order, exercise his 
option under sub-section (4), 

and in each such case such option once exercised shall be final: 

Provided that  where  an  officer  or  other employee  having  exercised  an  option  under sub-section (4) 

before the appointed day,— 

(i)  has  died  or  retired  before  the  appointed  day,  or  dies  or  retires  after  the  appointed  day, 

before exercising the option as required by this sub-section, or 

(ii) does not exercise the option as required by this sub-section, 

the  option  already  exercised  by  him  shall  be  deemed  to  have  been  validly  exercised  by  him  under        
sub-section (4). 

(4B) Where an officer or other employee— 

(a) has died or retired, or dies or retires, after an order of transfer under sub-section (1) in respect 
of such officer or other employee is made but before exercising the option under sub-section (4) or, as 
the case may be, as required by sub-section (4A); or 

(b)  has  died  or  retired,  or  dies  or  retires,  before  an  order  of  transfer  under  sub-section  (1)  in 

respect of such officer or other employee is made, 

he shall, notwithstanding anything contained in sub-section (4) or sub-section (4A),— 

(i) in a case falling under clause (a), be deemed to have exercised an option under sub-section (4); 

and 

(ii) in a case falling under clause (b), be deemed to have been transferred under sub-section (1) 

and exercised an option under sub-section (4), 

to  be  governed  by  the  leave,  provident  fund,  retirement  or  other  terminal  benefits  admissible  to  the 
employees of the Central Government in accordance with the rules and orders of the Central Government 
as amended from time to time: 

Provided that nothing in clause (a) of this sub-section shall apply to an officer or other employee who 
has,  before  the  appointed  day  been  paid  the  terminal  benefits  as  admissible  to  the  employees  of  the 
Corporation under the regulations made by the Corporation under this Act, unless such officer or other 
employee refunds in a lump sum within six months from the appointed day the amount of contributions 
made by the Corporation towards such terminal benefits: 

Provided  further  that  nothing  in  clause  (b)  of  this  sub-section  shall  apply  to  an  officer  or  other 
employee  who  has  intimated,  under  the  proviso  to  sub-section  (1),  his  intention  of  not  becoming  an 
employee of the Corporation. 

1. Ins. by Act 12 of 1977, s. 2 (w.e.f. 31-12-1976).  

7 

                                                           
(4C) Where an officer or other employee has exercised an option under sub-section (4), or exercises, 

or  is  deemed  to  have  exercised,  an  option  under  that  sub-section,  read  with  sub-section  (4A)  or             
sub-section  (4B),  to  be  governed  by  the  leave,  provident  fund,  retirement  or  other  terminal  benefits 
admissible to the employees of the Central Government, such benefits shall be calculated on the basis of 
the pay and allowances drawn by him in the Corporation.] 

(5) No officer or other employee transferred by an order made under sub-section (1),— 

(a) shall be dismissed or removed by an authority subordinate to that competent to make a similar 
or equivalent appointment under the Corporation as may be specified in the regulations made by the 
Corporation under this Act; 

1[(b) shall be dismissed or removed or reduced in rank except after an inquiry in which he has 
been  informed  of  the  charges  against  him  and  given  a  reasonable  opportunity  of  being  heard  in 
respect of those charges:] 
2[Provided that where it is proposed after such inquiry, to impose upon him any such penalty, such 
penalty  may  be  imposed  on  the  basis  of  the  evidence  adduced  during  such  inquiry  and  it  shall  not  be 
necessary to give such person any opportunity of making representation on the penalty proposed:] 

3[Provided further that] this clause shall not apply,— 

(i)  where  an  officer  or  employee  is  dismissed  or  removed  or  reduced  in rank  on  the  ground  of 

conduct which has led to his conviction on a criminal charge; or 

(ii) where the authority empowered to dismiss or remove an officer or employee or to reduce him 
in  rank  is  satisfied  that  for  some  reason,  to  be  recorded  by  that  authority  in  writing,  it  is  not 
reasonably practicable to hold such inquiry; or 

(iii) to an officer or employee who, after transfer to the Corporation, is appointed to a higher post 

under the Corporation in response to an open advertisement and in competition with outsiders. 

(6)  If,  in  respect  of  any  such  officer  or  employee  as  aforesaid,  a  question  arises  whether  it  is 
reasonably practicable to hold such inquiry as is referred to in sub-section (5), the decision thereon of the 
authority empowered to dismiss or remove him or to reduce him in rank shall be final. 

(7) Nothing contained in sub-section (1) shall apply to the members of the Central Secretariat Service 
or any other service or to persons on deputation to the Department referred to in that sub-section or to any 
of  its  attached  or  subordinate  offices  from  any  Ministry  of  the  Central  Government  or  from  any  State 
Government or from any organisation. 

13. Functions of Corporation.—(1) Subject to the provisions of this Act, it shall be the primary duty 

of  the  Corporation  to  undertake  the  purchase,  storage,  movement,  transport,  distribution  and  sale  of             
foodgrains and other foodstuffs. 

(2)  Subject  as  aforesaid,  the  Corporation  may  also,  with  the  previous  approval  of  the  Central 

Government,— 

(a) promote by such means as it thinks fit the production of foodgrains and other foodstuffs; 

(b)  set  up,  or  assist  in  the  setting  up  of,  rice  mills,  flour  mills  and  other  undertakings  for  the 

processing of foodgrains and other foodstuffs, and 

(c)  discharge  such  other  functions  as  may  be  prescribed  or  as  are  supplemental,  incidental  or 

consequential to any of the functions conferred on it under this Act. 

14. Executive Committee and other commodities.—(1) The board of directors of the Corporation 

may constitute an Executive Committee which shall consist of— 

1. Subs. by Act 53 of 1982, s. 2, for clause (b) (w.e.f. 21-10-1982).  
2. The proviso ins. by s. 2, ibid. (w.e.f. 21-10-1982). 
3. Subs. by s. 2, ibid., for “Provided that” (w.e.f. 21-10-1982). 

8 

                                                           
(a) the Chairman of the board; 

(b) the managing director; and 

(c) three other directors, of whom one shall be a non-official. 

(2) The Chairman of the board of directors shall be the Chairman of the Executive Committee. 

(3)  Subject  to  the  general  control,  direction  and  superintendence  of  the  board  of  directors,  the 
Executive  Committee  shall  be  competent  to  deal  with  any  matter  within  the  competence  of  the 
Corporation. 

(4)  The  board  of  directors  may  constitute  such  other  committees,  whether  consisting  wholly  of 
directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit, for 
such purposes as it may decide. 

(5) A committee constituted under this section shall meet at such times and places and shall observe 
such rules of procedure in reward to the transaction of business at its meetings (including the quorum at 
meetings) as may be provided by regulations made by the Corporation under this Act. 

(6)  The  members  of  a  committee  (other  than  the  directors  of  the  board)  shall  be  paid  by  the 
Corporation  such  fees  and  allowances  as  may  be  fixed  by  it  by  regulations  made  under  this  Act  for 
attending the meetings of the committee and for attending to any other work of the Corporation. 

 15. Member of board or committee thereof not to vote in certain cases.—A member of the board 
of directors of the Corporation or a committee thereof who has any direct or indirect pecuniary interest in 
any matter coming up for consideration at a meeting of the board of directors or committee thereof, shall, 
as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his 
interest at such meeting and the disclosure shall be recorded in the minutes of the board or the committee, 
as the case may be, and the member shall not take any part in any deliberation or decision of the board or 
committee with respect to that matter. 

CHAPTER III 

BOARDS OF MANAGEMENT 

 16. Boards of Management, their constitution and functions.—(1) The Central Government may, 
on a request received in this behalf from the State Government or Governments concerned or otherwise, 
by  notification  in  the  Official  Gazette,  establish  a  Board  of  Management  for  a  State  or  two  or  more 
contiguous States, if no State Food Corporation is functioning in such State or States. 

(2) The head office of the Board of Management shall be at such place as the Central Government 

may, by notification in the Official Gazette, specify. 

(3) The Board of Management shall consist of— 

(a) a Chairman to be appointed by the Board of directors of the Food Corporation of India; 

(b) the senior-most executive officer of the said Corporation employed at the head office of the 

Board of Management; and 

(c)  not  more  than  ten  other  members  to  be  appointed  by  the  Board  of  directors  of  the  said 

Corporation. 

(4) The members of a Board of Management referred to in clauses (a) and (c) of sub-section (3) shall 
hold  office  for  a  term  of  two  years  and  shall  be  eligible  for  re-appointment  and  the  other  terms  and 
conditions of their appointment shall be such as may be prescribed. 

(5) The Board of Management shall advise the Corporation on such matters as may be generally or 

specifically referred to it and shall perform such other functions as the Corporation may delegate to it. 

(6) The provisions of sections 20, 21 and 25 shall, so far as may be, apply in relation to the members 
of a Board of Management as they apply in relation to the members of the  Board of directors of a State 
Food Corporation: 

9 

Provided that the reference to the General Manager in clause (e) of section 20 shall be construed as a 

reference to the officer of the Corporation referred to in clause (b) of sub-section (3). 

(7) The Food Corporation of India may, after consultation with a Board of Management, appoint such 

staff as it considers necessary to enable that Board to perform its functions under this Act. 

(8) The Board of Management may, by order in writing, authorise any one or more of its members to 
exercise and perform, subject to such conditions and limitations, if any, as may be specified in the order, 
such of its powers and functions as it may think fit. 

(9) The Board of Management shall follow such procedure as may be provided by regulations made 

by the Food Corporation of India under this Act. 

(10) Where a Board of Management has been established— 

(i) for a State, or 

(ii) for two or more States, 

then such Board shall stand dissolved- 

(a) in the case referred to in clause (i), on the establishment of a Food Corporation for that State, 

and 

(b) in the case referred to in clause (ii), on the establishment of such Corporation for any one or 

more of such States. 

(11) Where a Board of Management stands dissolved under clause (b) of sub-section (10), the Central 
Government  may  establish  a  new  Board  of  Management  for  the  State  or  States  for  which  no  Food 
Corporation has been established. 

(12) The expenses of the Board of Management in the discharge of its functions under this Act shall 

be met by the Food Corporation of India. 

CHAPTER IV 
STATE FOOD CORPORATIONS 

 17. Establishment of State Food Corporation.—(1) The Central Government may, by notification 
in  the  Official  Gazette  and  after  consultation  with  the  Government  of  a  State,  establish  a  Food 
Corporation for that State under such name as may be specified in the notification. 

(2) A State Food Corporation established under sub-section (1) shall be a body corporate by the name 
notified under that sub-section, having perpetual succession and a common seal with power, subject to the 
provisions  of  this  Act,  to  acquire,  hold  and  dispose  of  property  and  to  contract,  and  may,  by  the  said 
name, sue and be sued. 

(3)  The  head  office  of  a  State  Food  Corporation  shall  be  at  such  place  within  the  State  as  may  be  

notified by the Central Government in the Official Gazette. 

(4) Subject to the provisions of this Act, a State Food Corporation may perform such of the functions 

of the Food Corporation of India as that Corporation may delegate to it. 

18. Capital of State Food Corporation.—(1) The Capital of a State Food Corporation shall be such 
sum not exceeding ten crores of rupees as the Central Government may, after consultation with the Food 
Corporation of India, fix. 

(2) The Central Government may, after such consultation, from time to time, increase the  capital of 

the State Food Corporation to such extent and in such manner as that Government may determine. 

(3) Such capital shall be provided— 

(a)  by  the  Central  Government  after  due  appropriation  made  by  Parliament  by  law  for  the 

purpose, and 

(b) by the Food Corporation of India, 

in  such  proportion  and  subject  to  such  terms  and  conditions  as  may  be  determined  by  the  Central 
Government. 

10 

19.  Management  of  State  Food  Corporation.—(1)  The  general  superintendence,  direction  and 
management  of  the  affairs  and  business  of  a  State  Food  Corporation  shall  vest  in  a  board  of  directors 
which shall consist of a Chairman, a General Manager and not more than ten other members, all of whom 
shall be appointed by the Food Corporation of India after consultation with the Central Government and 
the State Government. 

(2) The General Manager shall— 

(a)  exercise  such  powers  and  perform  such  duties  as  the  board  of  directors  may  entrust  or 

delegate to him; and 

(b) receive such salary and allowances and be governed by such terms and conditions of service 

as the board of directors may, in consultation with the Food Corporation of India, fix. 

(3) The board of directors, in discharging its functions, shall act on business principles having regard 
to  the interests  of the  producer  and  consumer  and  shall  be  guided  by  such  instructions  on  questions  of 
policy as may be given to it by the Food Corporation of India. 

(4) If any doubt arises as to whether a question is or is not a question of policy, the matter shall be 

referred to the Central Government whose decision thereon shall be final. 

(5)  The  members  of  the  board  of  directors,  other  than  the  General  Manager,  shall  be  entitled  to 

receive by way of remuneration or fees such sums as may be prescribed: 

Provided  that  no  official  member  shall  be  entitled  to  receive  any  remuneration  other  than  any 

allowances admissible to him under the rules regulating his conditions of service. 

(6) The term of office of, and the manner of filling casual vacancies among, the members of the board 

of directors shall be such as may be prescribed. 

20.  Disqualification for  office of member  of  board  of  directors.—A  person  shall  be  disqualified 

for being appointed as, and for being, a member of the board of directors of a State Food Corporation— 

(a) if he is, or at any time has been adjudicated insolvent or has suspended payment of his debts 

or has compounded with his creditors; or 

(b) if he is of unsound mind and stands so declared by a competent court; or 

(c) if he is or has been convicted of any offence which in the opinion of the Central Government 

involves moral turpitude; or 

(d)  if  he  has  been  removed  or  dismissed  from  the  service  of  the  Government  or  a  corporation 

owned or controlled by the Government; or 

(e) except in the case of the Chairman or the General Manager, if he is a salaried official of the 

Food Corporation of India or a State Food Corporation. 

21.  Removal  and  resignation  of  members  of  board  of  directors.—(1)  The  Food  Corporation  of 
India may, at any time, after consultation with the State Food Corporation, remove the General Manager 
from office after giving him a reasonable opportunity of showing cause against the proposed removal. 

(2) The board of directors of a State Food Corporation may remove from office any member of that 

board who— 

(a) is or has become subject to any of the disqualifications mentioned in section 20; or 

(b) is absent without leave of the board of directors from more than three consecutive meetings 

thereof without cause sufficient, in the opinion of the board, to exonerate his absence. 

(3)  A  member  of  such  board  may  resign  his  office  by  giving  notice  thereof  in writing  to  the  Food 
Corporation  of  India  and  on  such  resignation  being  accepted,  he  shall  be  deemed  to  have  vacated  his 
office. 

22. Meetings.—(1) The board of directors of a State Food Corporation shall meet at such times and 
places and shall observe such rules of procedure in regard to the transaction of business at its meetings 

11 

(including the quorum at meetings) as may be provided by regulations made by that Corporation under 
this Act. 

(2) The Chairman of the board of directors, or, if for any reason he is unable to attend any meeting, 
any other member of the board elected by the members of the board present at the meeting, shall preside 
at the meeting. 

(3) All questions which come up before any meeting of the board of directors shall be decided by a 
majority  of  the  votes  of  the  members  present  and  voting,  and  in  the  event  of  an  equality  of  votes,  the 
Chairman or in his absence, the person presiding shall have and exercise a second or casting vote. 

23. Appointment of officers, etc. and their conditions of service.—(1) A State Food Corporation 
may appoint such officers and other employees as it considers necessary for the efficient performance of 
its functions. 

(2)  Every  person  employed  by  a  State  Food  Corporation  under  this  Act  shall  be  subject  to  such 
conditions  of  service  and  shall  be  entitled  to  such  remuneration  as  may  be  determined  by  regulations 
made by the Corporation under this Act. 

24.  Executive  Committee  and  other  committees.—(1)  The  board  of  directors  of  a  State  Food 

corporation may constitute an Executive Committee which shall consist of— 

(a) the Chairman of the board of directors; 

(b) the General Manager; and 

(c) three other members of the board of directors, of whom one shall be a non-official. 

(2) the Chairman of the board of directors shall be the Chairman of the Executive Committee. 

(3)  Subject  to  the  general  control,  direction  and  superintendence  of  the  board  of  directors,  the 
Executive Committee shall be competent to deal with any matter within the competence of the State Food 
Corporation. 

(4)  The  board  of  directors  may  constitute  such  other  committees,  whether  consisting  wholly  of 
members of the board or wholly of other persons or partly of such members and partly of other persons as 
it thinks fit, for such purposes as it may decide. 

(5) A committee constituted under this section shall meet at such times and places and shall observe 
such rules of procedure in regard to the transaction of business at its meetings (including the quorum at 
meetings) as may be provided by regulations made by the State Food Corporation under this Act. 

(6)  The  members  of  a  committee  (other  than  the  directors  of  the  board)  shall  be  paid  by  the  State 
Food Corporation such fees and allowances as may be fixed by it by regulations made under this Act, for 
attending the meetings of the committee and for attending to any other work of that Corporation. 

25. Member of board or committee thereof not to vote in certain cases.—A member of the board 
of directors of a State Food Corporation or a committee thereof who has any direct or indirect pecuniary 
interest  in  any  matter  coming  up  for  consideration  at  a  meeting  of  the  board  of  directors  or  committee 
thereof, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the 
nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the board or 
the committee, as the case may be, and the member shall not take any part in any deliberation or decision 
of the board or the committee with respect to that matter. 

CHAPTER V 
FINANCE, ACCOUNTS AND AUDIT 

26.  Submission  of  programme  of  activities  and  financial  estimates.—(1)  A  Food  Corporation 
shall, before the commencement of each year, prepare a statement of programme of its activities during 
the forthcoming year as well as a financial estimate in respect thereof. 

(2)  The  statement  prepared  under  sub-section  (1)  shall  not  less  than  three  months  before  the 

commencement of each year, be submitted for approval— 

(a) in the case of the Food Corporation of India, to the Central Government; 

12 

(b) in the case of a State Food Corporation, to the Food Corporation of India. 

(3) The statement and the financial estimate of a Food Corporation referred to in sub-section (1) may, 
with the approval of the Central Government, in the case of the Food Corporation of India, or with the 
approval of the Food Corporation of India in the case of a State Food Corporation, be revised by the Food 
Corporation. 

27. Borrowing  powers  of  Food  Corporation.—1[(1)  A  Food  Corporation  may,  for the purpose  of 

carrying out its functions under this Act— 

(a) take advances against stocks of foodgrains or other foodstuffs held by it, or borrow money— 

(i) from any scheduled bank, or 

(ii) from any other bank or financial institution approved by the Central Government in this 

behalf, or 

(iii) from any other authority, organisation or institution or from the public on such terms and 

conditions as may be approved by the Central Government; or 

(b)  issue  and  sell  bonds  and  debentures  carrying  interest  at  such  rates  as  may  be  fixed  by  the 

Central Government at the time the bonds or debentures are issued: 

2[Provided  that  the  amount borrowed  by  a  Food  Corporation  under clause  (b)  shall  not  at  any  time 

exceed ten times the paid-up capital and the reserve fund established under section 33.]] 

(2)  The  Central  Government  may  guarantee  the  loans  and  advances  taken  by  a  Food  Corporation 
under  sub-section  (1)  as  to  the  re-payment  of  principal  and  the  payment  of  interest  thereon  and  other 
incidental charges. 

3[(3)  A  Food  Corporation  may,  for  the  purpose  of  carrying  out  its  functions  under  this  Act,  also 
borrow money from the Central Government; and that Government may, after due appropriation made by 
Parliament  by  law  in this behalf,  pay  to the  Food  Corporation such  sums  of  money  by  way  of  loan  on 
such terms and conditions as that Government may determine.] 

 28. Lending by Food Corporation on security of foodgrains.—A Food Corporation may lend or 
advance money to any person engaged in the production of foodgrains upon the security of foodgrains or 
such other security as may be prescribed, for any purpose connected with such production. 

29.  Power  to  enter  into  agreement  for  purchase  of  foodgrains  after  harvest.—(1)  A  Food 
Corporation may enter into agreement with any grower of foodcrops for the purchase of foodgrains after 
the harvest of such crops and any such agreement may provide that any sum payable by the Corporation 
to  the  grower  under  such  agreement  shall  be  payable  to  any  scheduled  bank  or  other  financing  agency 
nominated by the grower in this behalf to such extent as may be specified in the agreement. 

(2) The scheduled bank or other financing agency referred to in sub-section (1) may, on the basis of 
any agreement referred to in that sub-section, lend money to a grower of food crops who has entered into 
such agreement. 

30. Guarantee by Food Corporation.—A Food Corporation may, upon such terms and conditions 
as it may think fit, guarantee any loan referred to in sub-section (2) of section 29, and also any other loan 
raised by a grower of foodcrops, which is re-payable within a period not exceeding five years. 

31. Funds of Food Corporation.—(1) A Food Corporation shall have its own fund and all receipts 

of the Corporation shall be credited thereto and all payments of the Corporation shall be met therefrom. 

1. Subs. by Act 36 of 1988, s. 2, for sub-section (1) (w.e.f. 20-8-1988).  
2. Subs. by Act 27 of 2001, s. 2, for the proviso (w.e.f. 22-5-2001).  
3. Ins. by Act 67 of 1972, s. 5 (w.e.f. 15-12-1972).  

13 

                                                           
(2) Such fund shall be applied for meeting all administrative expenses of the Food Corporation  and 

for carrying out the purposes of this Act. 

 32. Investment of funds.—A Food Corporation may invest its funds in the securities of the Central 

Government or any State Government or in such other manner as may be prescribed. 

33. Allocation of surplus profits.—(1) A Food Corporation shall establish a reserve fund to which 

shall be credited every year such portion of its annual net profits as that Corporation thinks fit. 

(2)  After  making  provision  for  such  reserve  fund  and  for  bad  and  doubtful  debts,  depreciation  in 
assets  and  all  other  matters  which  are  usually  provided  for  by  companies  registered  and  incorporated 
under the Companies Act, 1956 (1 of 1956), the balance of its annual net profits shall be paid— 

(a) in the case of the Food Corporation of India, to the Central Government, and 

(b) in the case of a State Food Corporation, to the Central Government and the Food Corporation 

of India in the same proportion as the capital provided by them. 

1[34.  Accounts  and  audit.—(1)  A  Food  Corporation  shall  maintain  proper  accounts  and  other 
relevant records and prepare an annual statement of accounts including the profit and loss account and the 
balance-sheet  in  such  form  as  may  be  prescribed  by  the  Central  Government  in  consultation  with  the 
Comptroller and Auditor-General of India. 

(2)  The  accounts  of  a  Food  Corporation  shall  be  audited  annually  by  the  Comptroller  and                  

Auditor-General  of  India  and  any  expenditure  incurred  by  him  in  connection  with  such  audit  shall  be 
payable by the Food Corporation to the Comptroller and Auditor-General of India. 

(3)  The  Comptroller  and  Auditor-General  of  India  and  any  person  appointed  by  him  in  connection 
with the audit of the accounts of a Food Corporation shall have the same rights, privileges and authority 
in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of 
Government accounts and, in particular, shall have the right to demand the production of books, accounts, 
connected vouchers and other documents and papers and to inspect any office of the Food Corporation. 

(4) The accounts of a Food Corporation as certified by the Comptroller and Auditor-General of India 
or  any  other  person  appointed  by  him  in  this  behalf  together  with  the  audit  report  thereon  shall  be 
forwarded annually by the Comptroller and Auditor-General of India to,— 

(i) the Food Corporation concerned; 

(ii) where the accounts relate to a State Food Corporation, also to the Food Corporation of India; 

(iii) the Central Government, 

and that Government shall, as soon thereafter as may be, cause the same to be laid before both Houses of 
Parliament.] 

 35. Annual report on the working of Food Corporations.—(1) A Food Corporation shall, as soon 
as possible after the end of each year, submit to the Central Government an annual report on the working 
and affairs of the Corporation. 

(2)  The  Central  Government  shall,  as  soon  as  may  be  after  the  receipt  of  such  report,  cause  such 
report and the audit report received under section 34 2[together with any comments thereon or supplement 
thereto by the Comptroller and Auditor-General of India] to be laid before both Houses of Parliament. 

CHAPTER VI 

MISCELLANEOUS 

1. Subs. by Act 12 of 2000, s. 2, for section 34 (w.e.f. 2-6-2000). 
2. Ins. by Act 67 of 1972, s. 7 (w.e.f. 15-12-1972).  

14 

                                                           
36. Vacancies, etc., not to invalidate acts or proceedings of Food Corporation, etc.—(1) No act or 
proceeding of a Food Corporation or a committee thereof or a Board of Management shall be invalid by 
reason only of the existence of any vacancy in, or any defect in the constitution of, the board of directors 
of the Food Corporation or such Committee or Board of Management. 

(2)  No  act done  by  any  person  acting  in  good faith as  a  member  of  a  board  of directors  of  a  Food 
Corporation  or  of  a  Board  of  Management  shall  be  deemed  to  be  invalid  by  reason  only  of  his 
disqualification  for  being  appointed  as,  or  for  being,  a  member  of  such  board  of  directors  or  Board  of 
Management. 

37.  Delegation.—A  Food  Corporation  may,  by  general  or  special  order  in  writing,  delegate  to  the 
Chairman  or  any  other  member  of  the  board  of  directors  or  the  Secretary  or  other  officer  of  the 
Corporation, subject to such conditions and limitations, if any, as may be specified in the order, such of 
its powers and functions under this Act as it may deem necessary. 

38.  Declaration  of  fidelity  and  secrecy.—Every  director,  member  of  an  Advisory  Committee  or 
other committee, auditor, officer or other employee of a Food Corporation and every member of a Board 
of  Management  and  its  staff  shall,  before  entering  upon  his  duties,  make  a  declaration  of  fidelity  and 
secrecy in the form set out in the Schedule. 

39. Indemnity of directors.—(1) Every member of the board of directors of a Food Corporation and 
of  a  Board  of  Management  shall  be  indemnified  by  the  Corporation  against  all  losses  and  expenses 
incurred by him in the discharge of his duties except such as are caused by his own wilful act or default. 

(2) A member of the board of directors of a Food Corporation or a Board of Management shall not be 
responsible for  any  other member  or  for  any  officer  or  other  employee  of  the Corporation  or  Board  of 
Management or for any loss or expense resulting to the Corporation from the insufficiency or deficiency 
of value of, or title to, any property or security acquired or taken on behalf of the  Corporation in good 
faith,  or  by  the  insolvency  or  wrongful  act  of  any  person  under  obligation  to  the  Corporation  or  by 
anything done in good faith, in the execution of the duties of his office or in relation thereto. 

40. Protection of action taken under this Act.—No suit or other legal proceeding shall lie against a 
Food  Corporation  or  any  member  of  the  board  of  directors  thereof  or  any  officer  or  other  employee 
thereof or any member of a Board of Management or its staff or any other person authorised by a Food 
Corporation or a Board of Management to discharge any functions under this Act for any loss or damage 
caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance 
of this Act. 

41. Offences.—(1) Whoever, without the consent in writing of a Food Corporation, uses its name in 
any prospectus or advertisement, shall be punishable with imprisonment for a term which may extend to 
six months, or with fine which may extend to one thousand rupees, or with both. 

(2)  No  court  shall  take  cognizance  of  any  offence  under  sub-section  (1)  except  on  a  complaint  in 

writing by an officer authorised in this behalf by the Food Corporation concerned. 

42.  Provision  relating  to  income-tax,  super-tax,  etc.—For  the  purposes  of  the  Income-tax                   

Act,  1961  (43  of  1961),  or  any  other  enactment  for  the  time  being  in  force  relating  to  income-tax,               
super-tax  or  any  other  tax  on  income,  profits  or  gains,  a  Food  Corporation  shall  be  deemed  to  be  a 
company within the meaning of  the  Income-tax Act, 1961, and shall be liable to tax accordingly on its 
income, profits and gains. 

43.  Winding  up  of  Food  Corporation.—No  provision  of  law  relating  to  the  winding  up  of 
companies or corporations shall apply to a Food Corporation and it shall not be placed in liquidation save 
by order of the Central Government and in such manner as that Government may direct. 

44. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules to carry out the purposes of this Act. 

(2) Without prejudice to the generality of the foregoing power, such rule may provide for— 

15 

(a) the term of office of, and the manner of filling casual vacancies among, and the other terms 

and conditions of appointment of, the directors of the Corporation; 

(b) the composition of Advisory Committees and the terms and conditions of service of members 

thereof; 

(c) the additional functions which the Corporation may perform; 

(d)  the  remuneration  or  fees  payable  to  the  members  of  the  board  of  directors  of  a  State  Food 
Corporation  and  the  term  of  office  of,  and  the  manner  of  filling  casual  vacancies  among,  such 
members; 

(e) the securities (other than food grains) upon which a Food Corporation may lend or advance 

money; 

(f) the manner in which a Food Corporation may invest its funds; 

(g) the form of the annual statement of accounts and the balance sheet to be prepared by a Food 

Corporation; 

(h) any other matter which has to be or may by prescribed. 

(3) Every rule made by the  Central Government under this section shall be laid as soon as may be 
after it is made, before each House of Parliament while it is in session for a total period of thirty days 
1[which may be comprised in one session or in two or more successive sessions, and if, before the expiry 
of the session immediately following the session or the successive sessions aforesaid,] both Houses agree 
in making any  modification in the rule or both Houses agree that the rule should not be made, the rule 
shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however 
that any such modification or annulment shall be without prejudice to the validity of anything previously 
done under that rule. 

45.  Power  of  Food  Corporation  to  make  regulations.—(1)  A  Food  Corporation  may,  with  the 
previous sanction of the Central Government, by notification in the Official Gazette, make regulations not 
inconsistent with this Act and the rules made thereunder, to provide for all matters for which provision is 
necessary or expedient for the purpose of giving effect to the provisions of this Act. 

2[1A) The power to make regulations under this section shall include the power to give retrospective 
effect from a date not earlier than the date of commencement of this Act, to the regulations or any of them 
but no retrospective effect shall be given to any regulation so as to prejudicially affect the interests of any 
person to whom such regulation may be applicable.] 

(2) Without prejudice to the generality of the foregoing power, such regulation may provide for— 

(a) the methods of appointment, the conditions of service and the scales of pay of the officers and 

employees of a Food Corporation, other than the Secretary of the Food Corporation of India; 

(b)  the  duties  and  conduct  of  officers  and  employees  of  a  Food  Corporation,  other  than  the 

Secretary aforesaid; 

(c) the functions and duties which may be entrusted or delegated to the managing director or, as 

the case may be, the General Manager, or a Food Corporation: 

(d) the times and places at which meetings of a Food Corporation or any committee thereof shall 

be held and the procedure to be followed thereat; 

(e)  the  fees  and  allowances  payable  to  the  members  of  a  committee  under  sub-section  (6)  of 

section 14 or sub-section (6) of section 24; 

1. Subs. by Act 53 of 1982, s. 3, for certain words (w.e.f. 21-10-1982).  
2. Ins. by s. 4, ibid. (w.e.f. 21-10-1982).  

16 

                                                           
(f) generally, the efficient conduct of the affairs of a Food Corporation. 

(3)  The  Central  Government  may,  by  notification  in  the  Official  Gazette,  rescind  any  regulation 

which it has sanctioned and thereupon such regulation shall cease to have effect. 

(4) Any regulation which may be made by the Food Corporation of India under this Act may be made 
by  the  Central  Government  within  three  months  from  the  establishment  of  that  Corporation  and  any 
regulation  which  may  be  made  by  a  State  Food  Corporation  under  this  Act  may  be  made  by  the  Food 
Corporation of India within three months from the establishment of such State Food Corporation; and any 
regulation so made may be altered or rescinded by the Food Corporation concerned in the exercise of its 
powers under this Act. 

1[(5) Every regulation made under this Act shall be laid, as soon as may be after it is made, before 
each House of Parliament, while it is in session, for a total period of thirty days which may be comprised 
in one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in  the  regulation  or  both  Houses  agree  that  the  regulation  should  not  be  made,  the  regulation  shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that regulation.] 

2[46.  Validation.—No  regulation  made  or  purporting  to  have  been  made  with  retrospective                    
effect,  under  section  45  before  the  commencement  of  the  Food  Corporations  (Amendment)                              
Act, 1982 (53 of 1982) shall be deemed to be invalid or ever to have been invalid merely on the ground 
that  such regulation  was  made  with  retrospective  effect  and accordingly  every  such  regulation  and any 
action taken or thing done thereunder shall be as valid and effective as if the provisions of section 45, as 
amended by the Food Corporations (Amendment) Act, 1982 were in force at all material times when such 
regulation was made or action or thing was taken or done.] 

1. Added by Act 53 of 1982, s. 4 (w.e.f 21-10-1982).  
2. Ins. by s. 5, ibid. (w.e.f 21-10-1982).  

17 

                                                           
THE SCHEDULE 

(See Section 38) 

DECLARATION OF FIDELITY AND SECRECY 

I,____________________________________________,  declare 

that 

I  will 

faithfully, 

truly                      

and to the best of my judgment, skill and ability execute and perform the duties which are required of me 
as  director,  member  of  ____________________,  committee,  officer,  employee  or  auditor  (as  the  case 
may be) of the 

  or as member of the Board of Management at _______________ 

Food Corporation of India

Food Corporation 

under the Food Corporation of India and which properly relate to the office or position in or in relation to 
that Corporation held by me. 

I further declare that I will not communicate or allow to be communicated to any person not legally 
entitled  thereto  any  information  relating  to  the  affairs  of  the  said  Corporation  or  to  the  affairs  of  any 
person having any dealing with the said Corporation nor will I allow any person not legally entitled as 
aforesaid to inspect or have access to any books or documents belonging to, or in the possession of, the 
said Corporation and relating to the business of the said Corporation or the business of any person having 
any dealing with the said Corporation 

(Signature)________ 

Signed before me. 

_________________ 

18 

 
                      
 
 
