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

The Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 2007, enables the Central Government to disinvest its equity in the company, promoting private sector participation.

1: Act Background and Ministry Under Which This Act Is:

The Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 2007, was enacted to provide for the disinvestment of the Central Government’s equity in the Tyre Corporation of India Limited. This act aimed to facilitate private sector investment in the company and to ensure the optimum utilization of available resources for the manufacture, production, and distribution of tyres, tubes, and other rubber goods. The act falls under the administrative purview of the Ministry of Heavy Industries and Public Enterprises, which oversees the disinvestment of public sector enterprises. The ministry plays a crucial role in managing the government’s investment portfolio.

2: Enactment Date, Number of Chapters, Number of Sections:

The Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 2007, was enacted on 12th December 2007, and is known as Act No. 50 of 2007. The act is structured into six sections, with no formal chapters. These sections cover various aspects such as the disinvestment process, payment of consideration, methods of disinvestment, and provisions relating to employees. The act is relatively concise, focusing on the disinvestment process.

3: Act Governed By:

The Tyre Corporation of India Limited Act is governed by the Central Government, which has the power to make rules and regulations under the Act. The act is governed by the provisions outlined within it, as well as rules and regulations framed by the Central government. It is therefore a central authority oversight.

4: On Whom It Is Applicable:

The provisions of The Tyre Corporation of India Limited Act are applicable to the Tyre Corporation of India Limited, the Central Government, and any person or company acquiring shares in the company. The act ensures that all actions and activities are in accordance with the regulations outlined, as well as the Act’s mandate and guiding principles. The general public are indirect beneficiaries of the Act’s provisions. The act’s focus is to facilitate disinvestment.

5: Penalties/Punishments:

The Tyre Corporation of India Limited Act does not specifically lay down penalties or punishments for violation of its provisions. However, the act empowers the Central Government to take necessary actions to ensure the disinvestment process is carried out in accordance with the provisions of the act and any rules or orders made thereunder. The act ensures accountability through rules and regulations, emphasizing the proper management of the disinvestment process. This act therefore prioritizes good governance and public welfare.

6: Important Pointers:

• Disinvestment: The act provides for the disinvestment of the Central Government’s equity in the Tyre Corporation of India Limited.

• Valuation: It mandates that the consideration for disinvestment be determined based on the optimum valuation of assets and liabilities.

• Methods of Disinvestment: It allows for various methods of disinvestment, including public offer, preferential allotment, and private placement.

• Employee Protection: It safeguards the rights and conditions of service of existing employees.

• Overriding Effect: It has an overriding effect on other laws, ensuring its primacy in the disinvestment process.

• Rule-Making Power: It empowers the Central Government to make rules for carrying out the purposes of the act. The act facilitates the disinvestment process.

7: Act Copy: