Act Number: 38

Act Name: The State Bank of India (Subsidiary Banks) Act, 1959

Year: 1959

Enactment Date: 1959-09-10

Long Title: An Act to provide for the formation of certain Government or Government associated banks as subsidiaries of the State Bank of India and for the constitution, management and control of the subsidiary banks so formed, and for matters connected therewith, or incidental thereto.

Ministry: Ministry of Finance

Department: Department of Financial Services

Section 26: Term of office of directors.
    (1) A director of a subsidiary bank, 1 [nominated under clause (b) or clause (c) or clause (e) of sub-section (1) of section 25 or appointed under clause (ca) or clause (cb) of that sub-section] shall hold office during the pleasure of the authority 2 [nominating or appointing] him.
     3 [(2) Subject to the provisions contained in section 25, a director elected under clause (d) of sub-section (1) of that section shall hold office for three years 4 ***, and shall be eligible for re-election:
     Provided that no such director shall hold office continuously for a period exceeding six years.
     (2A) Subject to the provisions contained in section 25 and in sub-section (1), a director nominated under clause (c) and not being an officer of the State Bank or a director appointed under clause (ca) or clause (cb) or a director, not being an officer of the Central Government, nominated under clause (e) of sub-section (1) of section 25, shall hold office for such term not exceeding three years, as the Central Government may specify 5 [and thereafter until his successor shall have been duly appointed], and shall be eligible for re-nomination or re-appointment, as the case may be:
     Provided that no such director shall hold office continuously for a period exceeding six years.]
     6 *                             *                             *                             *                             *
Notes:
1. Subs. by Act 66 of 1988, s. 19, for certain words (w.e.f. 30-12-1988).
2. Subs. by s. 19, ibid., for "nominating" (w.e.f. 30-12-1988).
3. Subs. by s. 19, ibid., for sub-sections (2) and (2A) (w.e.f. 30-12-1988).
4. The words "and thereafter until his successor is duly elected" omitted by Act 45 of 2006, s. 16 (w.e.f.16-10-2006).
5. Subs. by s. 16, ibid., for "and thereafter until his successor shall have been duly nominated or appointed" (w.e.f.16-10-2006).
6. Sub-section (3) omitted by Act 66 of 1988, s. 19 (w.e.f. 30-12-1988).
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