STCS was constituted by proclamation of the Chogyal Palden Thondup Namgyal of Sikkim dated the 30th, March, 1972. It is constituted to regulate a Corporation for the purpose of promoting external and internal trade in Sikim. The Chogyal of Sikkim is pleased to proclaim and ordain as follows:
This Proclamation may be cited as the State Trading Corporation of Sikkim Proclamation of 1972.
There Shall be established a Corporation to be called the State Trading Corporation of Sikkim, With its head quarters at Gangtok, Sikkim.
The Corporation shall be a body corporate, having perpetual succession and a common seal, with power to acquire, hold or dispose of property both movable immovable and shall by the said name sue and be sued.
The general superintendence and direction of the affairs of the Corporation is entrusted to the Board of Directors, who may exercise all powers and do all acts and things which may be exercised or done by the Corporation.
The Board of Directors shall consist of five Directors nominated by the Government of Sikkim. Notwihstanding anything contained in sub-section (1) two additional Directors may be appointed on the Board by the Government of Sikkim.
The Government of Sikkim shall appoint one of the Directors nominated by it on the Board to be the Chairman of the Corporation.
The Government of Sikkim shall appoint one of the Directors nominated by it on the Board to be the Managing Director of the Corporation.
The Managing Director shall exercise such powers on behalf of the Corporation as may be delegated to him by the Board and approved by the Government.
The Corporation may carry on and transact any kind of business concerning the purchase, holding, stocking, sale, clearing and forwarding, export and import and transportation of any kind of materials inside Sikim and to do all other things as are incidental or may be thought conductive to the attainment of the above objectives or any of them.
The Board may make rules and regulations not inconsistent with this proclamation to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this proclamation.