Section 9A
Power of Reserve Bank to appoint additional director.
The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
About this Act
An Act to provide for the acquisition and transfer of the undertakings of certain banking companies, having regard to their size, resources, coverage and organisation, in order further to control the heights of the economy, to meet progressively, and serve better, the needs of the development of the economy and to promote the welfare of the people, in conformity with the policy of the State towards securing the principles laid down in clauses (b) and (c) of article 39 of the Constitution and for matters connected therewith or incidental thereto.
1[9A. Power of Reserve Bank to appoint additional director.]--(1) If the Reserve Bank is of the
opinion that in the interest of banking policy or in the public interest or in the interests of the
corresponding new bank or its depositors, it is necessary so to do, it may, from time to time, by order in
writing, appoint, with effect from such date as may be specified in the order, one or more persons to hold
office as additional directors of the corresponding new bank.
(2) Any person appointed as an additional director in pursuance of this section
(a) shall hold office during the pleasure of the Reserve Bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time as the Reserve Bank may specify;
(b) shall not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto; and
(c) shall not be required to hold qualification shares in the corresponding new bank;
(3) For the purpose of reckoning any proportion of the total number of directors of the corresponding new bank, any additional director appointed under this section shall not be taken into account.
(2) Any person appointed as an additional director in pursuance of this section
(a) shall hold office during the pleasure of the Reserve Bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time as the Reserve Bank may specify;
(b) shall not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto; and
(c) shall not be required to hold qualification shares in the corresponding new bank;
(3) For the purpose of reckoning any proportion of the total number of directors of the corresponding new bank, any additional director appointed under this section shall not be taken into account.
Notes
1. Ins. by Act 45 of 2006, s. 10 (w.e.f. 16-10-2006).