(1) Where the management of an industrial undertaking, being a company as defined in the Indian Companies Act, 1913,  is taken over by the Central Government, then, notwithstanding anything contained in the said Act or in the memorandum or articles of association of such undertaking,-
(a) it shall not be lawful for the shareholders of such undertaking or any other person to nominate or appoint any person to be a director of the undertaking;
(b) no resolution passed at any meeting of the shareholders of such undertaking shall be given effect to unless approved by the Central Government;
(c) no proceeding for the winding up of such undertaking or for the appointment of a receiver in respect thereof shall he in any court except with the consent of the Central Government.
(2) Subject to the provisions contained in sub-section (1), and to the other pro-visions contained in this Act and subject to such other exceptions, restrictions and limitations, if any, as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Indian Companies Act, 1913, shall continue to apply to such undertaking in the same manner as it applied thereto before the issue of the notified order under section 18A.
1. Now the Companies Act, 1956 (1 of 1956).
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