Section 24:
Removal from office of directors, etc.
(1) The Central Government may, after consulting the
Reserve Bank, remove from office 1[the chairman 2*** or a managing director.]
3* * * * *
(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.
11* * * * *
(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).