17Managing director

¹[(1) The managing director shall--

(a) be appointed, in consultation with the Small Industries Bank, by the State Government;

(b) be a whole-time officer of the Financial Corporation;

(c) perform such duties as the Board, by regulations, entrust or delegate to him;

(d) hold office for such term not exceeding three years as the State Government may specify and shall be eligible for re-appointment;

(e) receive such salary and allowances and be subject to other terms and conditions of service as the Board may, with the previous approval of the State Government, determine.]

²[(2) The State Government may, after consulting the Board, remove the managing director from office:

Provided that no managing director shall be so removed unless he has been given an opportunity of showing cause against his removal.]

³ [(3) Notwithstanding anything contained in sub-section (1), the State Government, with prior consultation of the Small Industries Bank, shall have the right to terminate the term of office of the managing director at any time, before the expiry of the term specified under clause (d) of sub-section (1) by giving him notice of not less than three months in writing or three months salary and allowances in lieu of such notice and the managing director shall also have right to relinquish his office at any time before the expiry of term specified under clause (d) of sub-section (1) by giving to the State Government notice of not less than three months in writing.]