Lawgist35BAmendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank
1[35B. Amendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank.--(1) In the case of a banking company--
(a) no amendment of any provision relating to 1[the maximum permissible number of directors or] the 2[appointment or re-appointment or termination of appointment or remuneration of a chairman, a] 3[managing director or any other director, whole-time or otherwise] or of a manager or or a chief executive officer by whatever name called, whether that provision be contained in the company's memorandum or articles of association, or in an agreement entered into by it, or in any resolution passed by the company in general meeting or by its Board of directors shall have effect unless approved by the Reserve Bank;
4[(b) no appointment or re-appointment or termination of appointment of a chairman, a managing or whole-time director, manager or chief executive officer by whatever name called, shall have effect unless such appointment, re-appointment or termination of appointment is made with the previous approval of the Reserve Bank.]
5[Explanation.--For the purposes of this sub-section, any provision conferring any benefit or providing any amenity or perquisite, in whatever form, whether during or after the termination of the term of office 6[of the chairman or the manager] or the chief executive officer by whatever name called or the managing director, or any other director, whole-time or otherwise, shall be deemed to be a provision relating to his remuneration.]
(2) Nothing contained in sections 7[268 and 269, the proviso to sub-section (3) of section 309, sections 310 and 311, the proviso to section 387, and section 388] (in so far as section 388 makes the 8[provisions of sections 269, 310] and 311 apply in relation to the manager of a company) of the Companies Act, 1956 (1 of 1956), shall 9[apply to any matter in respect of which the approval of the Reserve Bank has to be obtained under sub-section (1)].
10[(2A) Nothing contained in section 198 of the Companies Act, 1956 (1 of 1956) shall apply to a Banking company and the provisions of sub-section (1) of section 309 and of section 387 of that Act shall, insofar as they are applicable to a banking company, have effect as if no reference had been made in the said provisions to section 198 of that Act.]
(3) No act done by a person 11[as chairman or a managing or whole-time director] or a director not liable to retire by rotation or a manager or a chief executive officer by whatever name called, shall be deemed to be invalid on the ground that it is subsequently discovered that his 12[appointment or re-appointment] had not taken effect by reason of any of the provisions of this Act; but nothing in this sub-section shall be construed as rendering valid any act done by such person after his 13[appointment or re-appointment] has been shown to the banking company not to have had effect.]
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1 Ins. by Act 1 of 1984, s. 30 (w.e.f. 15-2-1984).
2 Subs. by Act 58 of 1968, s. 11, ibid, for "appointment or re-appointment or remuneration of a" (w.e.f. 1-2-1969).
3 Subs. by Act 33 of 1959, s. 21, for "managing or whole-time director or of a director not liable to retire by rotation" (w.e.f. 1-10-1959).
4 Subs. by Act 58 of 1968, s. 11, for clause (b) (w.e.f. 1-2-1969).
5 Added by Act 33 of 1959, s. 21 (w.e.f. 1-10-1959).
6 Subs. by Act 58 of 1968, s. 11, for "of the manager" (w.e.f. 1-2- 1969).
7 Subs. by Act 36 of 1962, s. 7, for "268, 269, 310, 311 and 388".
8 Subs. by Act 1 of 1984, s. 30, for "provisions of section 310" (w.e.f. 15-2-1984).
9 Subs. by Act 33 of 1959, s. 21, for certain words (w.e.f. 1-10-1959).
10 Ins. by Act 1 of 1984, s. 30 (w.e.f. 15-2-1984).
11 Subs. by Act 58 of 1968, s. 11, for "as a managing or whole-time director" (w.e.f. 1-2-1969).
12 Subs. by s. 11, ibid., for "appointment" (w.e.f. 1-2-1969).
13 Subs. by Act 58 of 1968, s. 12, for certain words (w.e.f. 1-2- 1969).
- 6 Form of business in which banking companies may engage
- 7 Use of words "bank", "banker", "banking" or "banking company"
- 8 Prohibition of trading
- 9 Disposal of non-banking assets
- 10 Prohibition of employment of managing agents and restrictions on certain forms of employment
- 10A Board of directors to include persons with professional or other experience
- 10B Banking company to be managed by whole time chairman
- 10BB Power of Reserve Bank to appoint chairman of the Board of directors appointed on a whole-time basis or a managing director of a banking company
- 10C Chairman and certain directors not to be required to hold qualification shares
- 10D Provisions of sections 10A and 10B to override all other laws, contracts, etc
- 11 Requirement as to minimum paid-up capital and reserves
- 12 Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders
- 12A Election of new directors
- 12B Regulation of acquisition of shares or voting rights
- 13 Restriction on commission, brokerage, discount, etc., on sale of shares
- 14 Prohibition of charge on unpaid capital
- 14A Prohibition of floating charge on assets
- 15 Restrictions as to payment of dividend
- 16 Prohibition of common directors
- 17 Reserve Fund
- 18 Cash reserve
- 19 Restriction on nature of subsidiary companies
- 20 Restrictions on loans and advances
- 20A Restrictions on power to remit debts
- 21 Power of Reserve Bank to control advances by banking companies
- 21A Rates of interest charged by banking companies not to be subject to scrutiny by courts
- 22 Licensing of banking companies
- 23 Restrictions on opening of new, and transfer of existing, places of business
- 24 Maintenance of a percentage of assets
- 25 Assets in India
- 26 Return of unclaimed deposits
- 26A Establishment of Depositor Education and Awareness Fund
- 27 Monthly returns and power to call for other returns and information
- 28 Power to publish information
- 29 Accounts and balance-sheet
- 29A Power in respect of associate enterprises
- 30 Audit
- 31 Submission of returns
- 32 Copies of balance-sheets and accounts to be sent to registrar
- 33 Display of audited balance-sheet by companies incorporated outside India
- 34 Accounting provision of this Act not retrospective
- 34A Production of documents of confidential nature
- 35 Inspection
- 35A Power of the Reserve Bank to give directions
- 35AA Power of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process
- 35AB Power of Reserve Bank to issue directions in respect of stressed assets
- 35B Amendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank
- 36 Further powers and functions of Reserve Bank
- 36A Certain provisions of the Act not to apply to certain banking companies
