State Financial Corporations Act,1951
Act No : 63
Section :
Board of directors.
10. Board of directors. The Board of directors shall consist of the following, namely:-- (a) 3*[four] directors nominated by the State Government 4*[of whom one director shall be a person who has special knowledge of or experience in small-scale industries] : 5*[Provided that in the case of a Joint Financial Corporation, the number of directors shall be such as the State Governments of the participating States may, by agreement among themselves, think fit to nominate, each participating State Government nominating not more than two directors] : 4*[Provided further that in the case of a Joint Financial Corporation, the director, who shall have special knowledge ---------------------------------------------------------------------- 1. Subs. by Act 52 of 1975, s. 30, for certain words (w.e.f. 16-2- 1976). 2. Subs. by Act 43 of 1985, s. 8. 3. Subs. by ACt 52 of 1975, s. 31, for "three" (w.e.f. 16-2-1976). 4. Ins. by s. 31, ibid. (w.e.f. 16-2-1976). 5. Ins. by Act 56 of 1956, s. 7. 77 of, or experience in, small-scale industries, shall be nominated by that participating State which, according to the terms of agreement between the participating States, is entitled to make such nomination]; (b) one director nominated by 1*** the Reserve Bank; 2*[(c)3*[two directors] nominated by the Development Bank;] (d) three directors elected in the prescribed manner 4*** by the parties referred to in clause (c) of sub-section (3) of section 4, one of whom shall be elected to represent scheduled banks, another to represent co-operative banks and the third to represent the remaining 5*[financial institutions and other institutions.] (e) one director elected in the prescribed manner from among themselves by the parties referred to in clause (d) of sub-section (3) of section 4 who are shareholders of the Financial Corporation; 6*[(f) a managing director appointed by the State Government in consultation with 7*[and after obtaining the advice of] the 8*[Development Bank] and, except in the case of first appointment, also with the Board :] Provided that on the first constitution of the Board the directors referred to in clauses (d) and (e) shall be nominated by the State Government and the directors so nominated shall, for the purposes of this Act, be deemed to be elected directors: Provided further that all directors of the Board first constituted other than the managing director shall retire at the end of the first year.
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