Uttar Pradesh Medical Supplies Corporation (UPMSC)

Uttar Pradesh New corporation to oversee medicines, equipment purchase and distribution

Question: In the Uttar Pradesh Cabinet meeting held recently, it was decided to set up a new corporation ‘Uttar Pradesh Medical Supplies Corporation’ for buying medicines and equipment and other health related services in the state. Under which of the following Companies Act it will form?
(a) Companies Act, 1956
(b) Companies Act, 1972
(c) Companies Act, 2011
(d) Companies Act, 2013

Answer (d) 
Related Facts:

  • On September 2nd, 2017 in the meeting of the State Cabinet, it was decided to set up a new corporation for buying, medical-equipment and other health related services in the state.
  • The name of this new corporation will be ‘Uttar Pradesh Medical Supplies Corporation’.
  • It will be formed under the Companies Act, 2013.
  • Its main purpose is to purchase medicines, equipments, consultants and non-services for medical, health and family welfare and other departments in the state and to purchase contracts under public-private partnership and purchase of other health related services.
  • Drug storage centers and logistics will be established under the Corporation to ensure the storage and distribution of medicines.
  • Transparent earnings and distribution system will be implemented through information technology.
  • Its headquarters will be set up in Lucknow.
  • The Corporation will be funded by 100 percent Uttar Pradesh government and will be started with a share capital of Rs. 20 crore.
  • This equity will be divided into 2,00,00,000 (two crore) shares of Rs 10 each.
  • Under the Companies Act, 2013, 11 promoters / directors of the company will hold one share of Rs 10 each and the remaining shares will be in the name of the governor through the state government.
  • The above mentioned 11 shareholder corporations will also be the first Board of Directors, who will be nominated by the government on the basis of designation.
  • The Central Drug Store established in the Directorate of Medical and Health will be abolished with the establishment of this corporation.

Reference:
http://information.up.nic.in/View_Hindinews.aspx?id=609
http://timesofindia.indiatimes.com/city/lucknow/lucknow-will-have-medical-supplies-corporation-for-hospitals/articleshow/60490027.cms

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