National Development Corporation Act, 1986

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Principal objects of Corporation.

10.—(1) The principal objects of the Corporation shall be stated in its memorandum of association to be—

(a) to establish either alone or in co-operation with a State-sponsored commercial enterprise, any enterprise which, in the opinion of the Corporation, is capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(b) to invest, in consultation, where appropriate, with State-sponsored bodies, in any enterprise (including any enter prise which is wholly or partly owned by a State-sponsored commercial enterprise) which, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(c) to manage, assist (financially or otherwise), including by participating in joint ventures, in the establishment, promotion and development of any enterprise (including any enterprise which is wholly or partly owned by a State-sponsored commercial enterprise) which, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(d) to invest in any enterprise which is being established or has been established to cater for tourists and which, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(e) to assist (financially or otherwise), manage or act as a holding company for any State-sponsored commercial enterprise established after the passing of this Act which, in the opinion of the Corporation, is capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(f) to assist (financially or otherwise), manage or act as a holding company for any enterprise established by a State-sponsored commercial body which, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(g) to invest in any enterprise involved in the exploitation, development, production or marketing of natural resources, including agricultural, fishery and forestry resources where such an enterprise, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(h) to invest in any enterprise whose functions include developing or entering into long-term supply contracts between producers and processors where such an enterprise, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(i) to assist (financially or otherwise) any enterprise engaged in the establishment, promotion, development or provision of marketing and related services to particular sectors of industry where such an enterprise, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(j) to establish, promote, assist (financially or otherwise) any enterprise engaged in the exploitation of research carried out in a university or other third level educational institution, the Innovation Centre, the National Microelectronics Application Centre, the Inventions Service of the Institute for Industrial Research and Standards or similar bodies in the State where such an enterprise, in the opinion of the Corporation, is profitable and efficient or capable of becoming profitable and efficient and has reasonable prospects for profitability, development, expansion, growth or providing viable employment;

(k) to encourage investment (other than by financial inducement) in any enterprise in which the Corporation has assisted (financially or otherwise) and to encourage investment (other than by financial inducement) in any enterprise of which the Corporation is a holding company;

(l) to establish and maintain (as soon as practicable after the vesting day) an investment fund which shall be known as “the Revolving Investment Fund for Employment”, into which there shall be paid any moneys realised by the Corporation on investments, dividends paid to the Corporation and, subject to any directives issued by the Minister under section 31 (2), any profits accruing to the Corporation and which shall be used for the purposes for which the Corporation is established.

(2) In carrying out its objects the Corporation shall have regard to its general duties under section 13 .

(3) The Corporation shall have power in particular—

(a) to sell, realise or otherwise dispose of its investments;

(b) to acquire, hold and dispose of securities;

(c) to acquire and dispose of land and other property;

(d) to establish, promote, assist (financially or otherwise) or manage any profitable enterprise or any enterprise likely to become profitable;

(e) to form or to participate in partnerships;

(f) to form, assist in the formation of or participate in co-operatives;

(g) to apply for, to purchase or otherwise acquire, to sell or otherwise dispose of, patents, trade marks, licences or other industrial or intellectual property rights;

(h) to employ and remunerate employees, consultants, or other advisers;

(i) to borrow temporarily (subject to section 20 );

(j) to accept a gift of money, securities, land and other property upon such trusts and conditions (if any) as may be specified by the donor;

(k) to make a loan to any enterprise provided that such a loan is not inconsistent with the provisions of section 15 .

(4) Nothing in this section shall prevent or restrict the inclusion among the objects of the Corporation as stated in the memorandum of association of all such objects and powers as are reasonably necessary or proper for or incidental or ancillary to the due attainment of the principal objects aforesaid and are not inconsistent with this Act.

(5) The Corporation shall have power to do anything which appears to be requisite to or which appears to it to facilitate the performance by it of any of its objects as specified in this Act or in its memorandum of association and is not inconsistent with any enactment for the time being in force.

(6) Nothing in this Act shall be construed as enabling the Corporation to give grants to any enterprise.