Lawgist36ABPower of Reserve Bank to appoint additional directors
1[36AB. Power of Reserve Bank to appoint additional directors.--(1) If the Reserve Bank is of 2[opinion that in the interest of banking policy or in the public interest or] in the interests of the banking company or its depositors it is necessary so to do, it may, from time to time by order in writing, appoint, with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the banking company.
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(2) Any person appointed as additional director in pursuance of this section--
(a) shall hold office during the pleasure of the Reserve Bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time as the Reserve Bank may specify;
(b) shall not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto; and
(c) shall not be required to hold qualification shares in the banking company.
(3) For the purpose of reckoning any proportion of the total number of directors of the banking company, any additional director appointed under this section shall not be taken into account.]
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1. Ins. by Act 55 of 1963, s. 18 (w.e.f. 1-2-1964).
2. Subs. by s. 14, ibid., for "opinion that" (w.e.f. 1-2-1969).
3. Proviso omitted by Act 1 of 1984, s. 31 (w.e.f. 15-2-1984).
