State Bank of India (Subsidiary Banks) Act,1959
Act No : 38
Section :
Removal from office of director.
31. Removal from office of director.-(1) The State Bank may, with the approval of the Reserve Bank, for any sufficient reason, remove from office a director nominated under clause (c) of sub-section (1) of section 25 and not being an officer of the State Bank. (2) The Central Government may, in consultation with the State Bank, for any sufficient reason, remove from office a director 3*[appointed under clause (ca) or clause (cb) or nominated under clause (e)] of sub-section (1) of section 25 and not being an officer of the Central Government. (3) Any director elected under clause (d) of sub-section (1) of section 25, may be removed from office-- (a) by the State Bank, with the approval of the Reserve Bank, if at the time of the removal there are no shareholders other than the State Bank registered in the books of the subsidiary bank concerned; ---------------------------------------------------------------------- 1. Subs. by Act 48 of 1973, s. 21 for "general manager" (w.e.f. 1-7- 1974). 2. Ins. by s. 25, ibid. (w.e.f. 1-7-1974). 3. Subs. by s. 26, ibid., for certain words (w.e.f. 1-7-1974). 193 (b) by a resolution passed by a majority of the votes of such shareholders holding in the aggregate not less than one-half of the share capital held by all such shareholders: Provided that if the total amount of the holdings of all shareholders, other than the State Bank, registered in the books of the subsidiary bank, on the date of the resolution, is below five per cent., of the total issued capital, the resolution shall not have effect unless confirmed by the State Bank. (4) No director shall be removed from office under sub-section (1) or sub-section (2) unless he has been given an opportunity of showing cause against such removal.
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