The Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 2007

This Act may be called the Tyre Corporation of India Limited (Disinvestment ofOwnership) Act, 2007.

Where the Central Government, on the recommendations of theBoard for Reconstruction of Public Sector Enterprises, is of the opinion that disinvestment is to be madein the Tyre Corporation of India Limited (hereinafter referred to as the company), it may pass an orderproviding for transfer, exchange or relinquishment of shares in the company to any person on such termsand conditions as may be agreed upon.

(1) For the transfer to, andvesting in, any person, the shares of the company, there shall be given to the Central Government by suchperson or in case such person is a company, by such company, such consideration, having regard to theoptimum valuation of land, assets and liabilities of the company in accordance with a valuation method asspecified by the Central Government. (2) The manner of payment of consideration for transfer of shares of the company to the transfereeshall be such as may be agreed upon between the transferor, the company and the transferee, the person orthe company, as the case may be.

The Central Government may, in its order made under section 2,specify that disinvestment of shares shall be effected by one or more of the following methods as may bespecified in such order, namely:-- (a) by making a public offer or preferential allotment or private placement in accordance withsuch procedure as applicable in case of any other Government company; (b) by directing the company to make further issue of equity capital to the members of the publicor preferential allotment or private placement, as the case may be, in accordance with such procedureas applicable in case of the Government company.

(1) Every officer orother employee of the company, except the Chairman and Directors, serving in its employmentimmediately before the disinvestment of the company under this Act, shall continue in office or serviceafter such disinvestment, on same terms and conditions as would have been admissible to him if there had been no such disinvestment and shall continue to do so until the expiry of the period of three years fromthe date of disinvestments. (2) Where an officer or other employee of the company opts under sub-section (1) not to be in theemployment or service of the company, such officer or other employee shall be deemed to have resigned.