Section 24
Removal from office of directors, etc.
The State Bank of India Act, 1955
About this Act
An Act to constitute a State Bank for India, to transfer to it the undertaking of the Imperial Bank of India and to provide for other matters connected therewith or incidental thereto.
(1) The Central Government may, after consulting the
Reserve Bank, remove from office 1[the chairman 2*** or a managing director.]
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(3) The Central Government, 4*** may remove from office any director 5[appointed under clause (ca) or clause (cb) or nominated under clause(d) 6[of section 19] 7[or any member of a Local Board nominated under clause (c) of sub-section (1) of section 21] and 8[appoint or nominate, as the case may be], in his stead another person to fill the vacancy.
(4) The shareholders, other than the 9[Central Government], may, by a resolution passed by majority, of the votes of such shareholders holding in the aggregate not less than one-half of the share capital held by all such shareholders, remove any director elected under clause (c) 10***of section 19 and elect in his stead another person to fill the vacancy.
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(6) No person shall be removed from his office under sub-section (1) 12*** or sub-section (3) unless he has been given an opportunity of showing cause against his removal.
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(3) The Central Government, 4*** may remove from office any director 5[appointed under clause (ca) or clause (cb) or nominated under clause(d) 6[of section 19] 7[or any member of a Local Board nominated under clause (c) of sub-section (1) of section 21] and 8[appoint or nominate, as the case may be], in his stead another person to fill the vacancy.
(4) The shareholders, other than the 9[Central Government], may, by a resolution passed by majority, of the votes of such shareholders holding in the aggregate not less than one-half of the share capital held by all such shareholders, remove any director elected under clause (c) 10***of section 19 and elect in his stead another person to fill the vacancy.
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(6) No person shall be removed from his office under sub-section (1) 12*** or sub-section (3) unless he has been given an opportunity of showing cause against his removal.
Notes
1. Subs. by Act 73 of 1976, s. 4, for “the chairman or the vice-chaiman” ( w.e.f. 11-6-1976).
2. The word “, vice-chairman” omitted by Act 27 of 2010, s. 18 (w.e.f. 15-9-2010).
3. Omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-1976).
4. The words “after consulting the Reserve Bank,” omitted by Act 27 of 2010, s. 18 (w.e.f. 15-9-2010).
5. Subs. by Act 48 of 1973, s. 8, for “nominated under clause (d)” (w.e.f. 1-7-1974).
6. Subs. by Act 3 of 1994, s. 14, for “sub-section (1) of section 19” (w.e.f. 15-10-1993).
7. Ins. by Act 35 of 1964, s. 8 (w.e.f. 1-12-1964).
8. Subs. by Act 48 of 1973, s. 8 for “nominate” (w.e.f. 1-7-1974).
9. Subs. by Act 32 of 2007, s. 8, for “Reserve Bank” (w.e.f. 29-6-2007).
10. Certain words omitted by Act 3 of 1994, s. 14 (w.e.f. 15-10-1993).
11. Omitted by s. 14, ibid. (w.e.f. 15-10-1993).
12. The words, bracket and figure “or sub-section (2)” omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-1976).
2. The word “, vice-chairman” omitted by Act 27 of 2010, s. 18 (w.e.f. 15-9-2010).
3. Omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-1976).
4. The words “after consulting the Reserve Bank,” omitted by Act 27 of 2010, s. 18 (w.e.f. 15-9-2010).
5. Subs. by Act 48 of 1973, s. 8, for “nominated under clause (d)” (w.e.f. 1-7-1974).
6. Subs. by Act 3 of 1994, s. 14, for “sub-section (1) of section 19” (w.e.f. 15-10-1993).
7. Ins. by Act 35 of 1964, s. 8 (w.e.f. 1-12-1964).
8. Subs. by Act 48 of 1973, s. 8 for “nominate” (w.e.f. 1-7-1974).
9. Subs. by Act 32 of 2007, s. 8, for “Reserve Bank” (w.e.f. 29-6-2007).
10. Certain words omitted by Act 3 of 1994, s. 14 (w.e.f. 15-10-1993).
11. Omitted by s. 14, ibid. (w.e.f. 15-10-1993).
12. The words, bracket and figure “or sub-section (2)” omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-1976).