State Bank of India Act,1955
Act No : 23
Section :
Meetings of Local Boards.
4*[31A. Meetings of Local Boards.-(1) A Local Board shall meet at such time and place and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed. (2) All questions at the meeting shall be decided by a majority of the votes of the members present and in the case of equality of votes, the person presiding at the meeting shall have a second or casting vote. (3) A member who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal entered into or proposed to be entered into by or on behalf of the State Bank, shall, at the earliest possible opportunity, disclose the nature of his interest to the Local Board and shall not be present at any meeting of the Local Board when any such contract, loan, arrangement or proposal is discussed unless his presence is required by the other members for the purpose of eliciting information, and no member so required to be present shall vote on any such contract, loan, arrangement or proposal: Provided that nothing contained in this sub-section shall apply to such member by reason only of his being-- (i) a shareholder (other than a director) holding not more than two per cent. of the paid-up capital in any public company as defined in the Companies Act, 1956 (1 of 1956), or any corporation established by or under any law for the time being in force in India or any co- operative society, with which or to which the State Bank has entered into or ---------------------------------------------------------------------- 1. Ins. by Act 48 of 1973, s. 10 (w.e.f. 1-7-1974). 2. Certain words omitted by Act 3 of 1994, s. 16 (w.e.f. 15-10-1993). 3. The words "other than a managing director", omitted by s. 10, ibid. (w.e.f. 1-7-1974). 4. Subs. by s. 10, ibid., for "any such director" (w.e.f. 1-7-1974). 5. Ins. by Act 35 of 1964, s. 10 (w.e.f. 1-12-1964). 127 made or proposes to enter into or make, a contract, loan, arrangement or proposal, or (ii) a director ex officio of the State Bank or a director of a subsidiary bank. (4) If for any reason neither the president nor the vice- president is able to be present at a meeting of the Local Board, any member, 1*[other than the chief general manager], elected by the members present from amongst themselves, shall preside at the meeting. (5) Notwithstanding anything contained in this section, the chairman shall preside at any meeting of a Local Board at which he is present and in the absence of the chairman, the vice-chairman, if he is a member of the Local Board, shall, whenever he is present, preside at such meeting.
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