Section 52A
Agreement with National Bank on appointment of directors to prevail.
The National Bank for Agriculture and Rural Development Act, 1981
About this Act
An Act to establish a development bank to be known as the National Bank for Agriculture and Rural Development for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas and for matters connected therewith or incidental thereto.
1[52A. Agreement with National Bank on appointment of directors to prevail.--(1) Where any
agreement entered into by the National Bank with a company or a body corporate while granting loans
and advances, provides for the appointment by the National Bank of one or more directors of such
company or body corporate, such provisions and any appointment of directors made in pursuance thereof
shall be valid and effective, notwithstanding anything to the contrary contained in 2[the Companies Act,
2013 (18 of 2013)] or in any other law for the time being in force, or in the memorandum, articles of
association or any other instrument relating to the company or body corporate, and any provision
regarding share qualification, age-limit, number of directorships, removal from office of directors and
such like conditions contained in any such law or instrument aforesaid, shall not apply to any director
appointed by the National Bank in pursuance of the agreement as aforesaid.
(2) Any director appointed as aforesaid shall--
(a) hold office during the pleasure of the National Bank and may be removed or substituted by any person by order in writing of the National Bank;
(b) 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 discharge of his duties as a director or anything in relation thereto;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.]
(2) Any director appointed as aforesaid shall--
(a) hold office during the pleasure of the National Bank and may be removed or substituted by any person by order in writing of the National Bank;
(b) 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 discharge of his duties as a director or anything in relation thereto;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.]
Notes
1. Ins. by Act 55 of 2000, s. 29 (w.e.f. 1-2-2001).
2. Subs. by Act 7 of 2018, s. 13, for "the Companies Act, 1956 (1 of 1956)" (w.e.f. 15-3-2018).
2. Subs. by Act 7 of 2018, s. 13, for "the Companies Act, 1956 (1 of 1956)" (w.e.f. 15-3-2018).