Appointment of Additional Directors of Banking Company

September 14, 2019
 
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The Section 36AB of Banking Regulation Act, 1934 confers Power on Reserve Bank to appoint additional Directors of banking Company.

additional Directors of banking Company

Appointment of Additional Directors of Banking Company

  • If Reserve Bank is of opinion that it is in the interests of the banking company or its depositors to appoint one or more persons to hold office as additional Directors of the banking company.
  • Such additional director may hold office during the pleasure of the Reserve Bank or period not exceeding three years.
  • He shall not be required to hold qualification-shares in the banking company.
  • He 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
  • 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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