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Memorandum of association.
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4.—(1) The memorandum of association of the Company shall be in such form consistent with this Act as may be approved of by the Minister.
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(2) (a) The objects of the Company shall be so stated in the memorandum of association that the principal functions of the Company are:
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(i) to acquire, hold and sell, assign and otherwise deal in shares and debentures issued by concerns satisfying the Company that they are eligible concerns within the meaning of this subsection,
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(ii) to make subject to such conditions if any as the Company may require secured and unsecured loans to such concerns,
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(iii) to provide short-term finance, including bill finance, for such concerns, and
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(iv) to guarantee the due repayment with interest of borrowings by such concerns.
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(b) A concern shall be an eligible concern for the purposes of this subsection if in the opinion of the Company—
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(i) it is engaged in an industrial activity (including any activity ancillary to industry),
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(ii) the employment involved and total capital employed in it are significant either nationally or locally,
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(iii) the proportion of its owners' contribution to its total capital is reasonable,
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(iv) it has reasonable prospects of profitability on a permanent basis, whether as for the time being constituted or after adaptation,
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(v) its continuance is in doubt because of inability to obtain its financial requirements from commercial sources, and
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(vi) its failure to receive financial assistance would have serious repercussions either nationally or locally.
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