Foir Teoranta Act, 1972.

Memorandum of association.

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.

(2) (a) The objects of the Company shall be so stated in the memorandum of association that the principal functions of the Company are:

(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,

(ii) to make subject to such conditions if any as the Company may require secured and unsecured loans to such concerns,

(iii) to provide short-term finance, including bill finance, for such concerns, and

(iv) to guarantee the due repayment with interest of borrowings by such concerns.

(b) A concern shall be an eligible concern for the purposes of this subsection if in the opinion of the Company—

(i) it is engaged in an industrial activity (including any activity ancillary to industry),

(ii) the employment involved and total capital employed in it are significant either nationally or locally,

(iii) the proportion of its owners' contribution to its total capital is reasonable,

(iv) it has reasonable prospects of profitability on a permanent basis, whether as for the time being constituted or after adaptation,

(v) its continuance is in doubt because of inability to obtain its financial requirements from commercial sources, and

(vi) its failure to receive financial assistance would have serious repercussions either nationally or locally.