(1) Subject to the control of the Central Government, the directors shall take such steps as may be necessary for the purpose of efficiently managing the business of the railway company and, in particular, the directors shall have power, notwithstanding anything contained in the Companies Act or in the memorandum or articles of association of the railway company,—
(a) to chose one of their number to be the chairman, and to delegate to him or to any one or more of the directors all or any of their powers;
(b) with the previous approval of the Central Government and subject to such conditions as that Government may think fit to impose, to raise funds in such manner and offer such security there for as they think fit;
(c) to carry out such repairs as may be necessary in respect of any machinery, rolling stock, buildings, works or other property in their custody;
(d) to do all acts necessary for making, maintaining, altering or repairing and using the railway of the railway company;
(e) to employ such persons as may be necessary for enabling them to efficiently discharge their duties, and define the conditions of service of such employees.
(2) The directors may, with the previous sanction of the Central Government, cancel or vary, either unconditionally or subject to such conditions as they think fit to impose, any contract or agreement entered into between the railway company and any other person at any time before the issue of the notified order under section 3, if such contract or agreement had been entered into in bad faith and is detrimental to the interests of the railway company.