5A.
Determination of the Directors who are to cease to hold office.-(1)
The ascertainment of the Director or Directors who shall cease
to be such, on the occasion of a reconstitution of the Board
of Directors under sub-section (3) of section 10A of the Act,
and of the person or persons who are to be removed from the
membership of the Board of Directors in pursuance of sub-section
(5) of the said section 10A, shall be done as hereinafter
laid down.
(2) The Board of Directors or, as the case
may be, the Reserve Bank, shall ascertain the number of Directors
out of the ineligible Directors, who have to cease to hold
the office, or, as the case may be, have to be removed from
such Board.
(3) The names of the Directors who are
to cease to hold office, or, as the case may be, have to be
removed from the Board of Directors, shall be determined by
drawing lots from among the names of the ineligible Directors,
the names of such number of Directors, as is determined under
sub-rule (2) above.
(4) For the purposes of sub-rule (3), the
following provisions shall be observed, namely,-
(i) the names of the ineligible Directors
shall be grouped according to the periods for which the Directors
have held office;
(ii) if there are two such groups only,
the names of the Directors in the group representing a shorter
period of office shall be excluded;
(iii) if there are more than two such groups,
the names of those in the group representing the shortest
period of office shall be excluded:
PROVIDED that such exclusion
under clause (ii) or clause (iii) shall not be made if thereby
the number of Directors whose names are to be included in
the draw is not more than the number determined under sub-rule
(2).
(5) The drawing of lots in pursuance of
sub-section (3) of section 10A of the Act shall be done by
the Board of Directors at a meeting of such Board.
(6) The drawing of lots of the Reserve
Bank under sub-section (5) of section 10A of the Act shall
be done by an officer of the Reserve Bank duly authorised
in this behalf, and after giving a reasonable opportunity
to the banking company to nominate a Director or officer of
the banking company to be present at the time of the drawing
of lots. |
