THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984
THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984
Title : THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984
Year : 1984
(1) The general superintendence, direction and management of the affairs and business of the Reconstruction Bank shall vest in a Board of directors which may exercise all powers and do all acts and things which may be exercised or done by the Reconstruction Bank.
(2) Save as otherwise provided in the regulations made under this Act, the Chairman shall also have powers of general superintendence, direction and management of the affairs and business of the Reconstruction Bank and may also exercise all powers and do all acts and things which may be exercised or done by the Reconstruction Bank.
(3) Subject to the provisions of this Act, the Board, in discharging its functions, shall act on business principles with due regard to public interest.
(4) In the discharge of its functions under this Act, the Reconstruction Bank shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing, and if any dispute arises as to whether a question is or is not a question of such policy, the dispute shall be decided by the Central Government whose decision thereon shall be final.
(1) The Board shall consist of the following, namely:-
(a) A Chairman, to be appointed by the Central Government, who shall function both as the Chairman and as the managing director;
(b) A Deputy Governor of the Reserve Bank, to be nominated by that Bank;
(c) A director, to be nominated by the Development Bank;
(d) Not more than fifteen directors to be nominated by the Central Government, of whom-
(i) Three shall be officials of the Central Government,
(ii) Not more than three shall be from the public financial institutions,
(iii) Not more than five shall be from the State Bank, nationalized banks and the State Financial Corporations,
(iv) Not more than four shall be from among persons who have, in the opinion of the Central Government, special knowledge of, and professional experience in, science, technology, economics, industry, industrial co-operatives, law, industrial finance, investment, accountancy, marketing or any other matter, the special knowledge of, or professional experience in, which would in the opinion of the Central Government, be useful to the Reconstruction Bank.
(2) A director nominated under sub-section (1) shall hold office during the pleasure of the authority nominating him.
(3)1*Subject to the provisions of sub-section (2), a director nominated under clause (c) or clause (d) of sub-section (1) and not being an official of Government or not being an official or whole time director of the Development Bank or a public financial institution or the State Bank or a nationalized bank or a State Financial Corporation, shall hold office for such term, not exceeding three years, as the authority nominating him may specify in this behalf and thereafter until his successor enters upon his office, and shall be eligible for re-nomination: Provided that no such director shall hold office continuously for a period exceeding six years.
No person shall be qualified to be a member of the Board if-
(a) He has been removed or dismissed from service of-
(i) Government, or
(ii) Reserve Bank, State Bank or any other bank, or
(iii) Any public financial institution or State financial corporation, or
(iv) Any other corporation owned or controlled by Government, on a charge of corruption or bribery; or
(b) He is, or at any time has been, adjudicated an insolvent or has suspended payment of his debts or has compounded with his creditors; or
(c) He is a lunatic and stands so declared by a competent court; or
(d) He is or has been convicted of any offence, which, in the opinion of the Central Government, involves moral turpitude.
(1) The Chairman shall hold office for such term not exceeding five years as the Central Government may specify in this behalf and any person so appointed shall be eligible for re-appointment for a like term.
(2) Notwithstanding anything contained in sub-section (1),-
(a) The Central Government shall have the right to terminate the term of office of the Chairman at any time before the expiry of the term specified under sub-section (1) by giving him notice of not less than three months in writing or three months salary and allowances in lieu of such notice; and the Chairman shall also have the right to relinquish his office at any time before the expiry of the term specified under sub-section (1) by giving, to the Central Government, notice of not less than three months in writing;
(b) The Central Government may, at any time, remove the Chairman from office:
Provided that no person shall be removed from his office under this clause, unless he has been given a reasonable opportunity of showing cause against his removal.
(3) Where any vacancy occurs in the office of the Chairman, the Central Government shall appoint a suitable person to discharge the functions of the Chairman.
(4) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Central Government may appoint a suitable person to function as the Chairman until the day on which the Chairman resumes the charge of his functions.
(5) The Chairman shall be a whole-time officer of the Reconstruction Bank and shall receive such salaries, allowances and other benefits, and shall be subject to such other terms and conditions, as may be determined by the Central Government:
Provided that the Board may, if it is of opinion, that it is necessary in the public interest so to do, permit the Chairman to undertake, at the request of the Central Government or the Reserve Bank, such part-time honorary work as is not likely to interfere with his duties as Chairman.
No member of the Board shall have an interest, direct or indirect, in any business, industry or concern to which any assistance has been given or is to be given by the Reconstruction Bank under this Act and if any such member acquires such interest at any time during the continuance of such assistance, he shall immediately disclose it to the Board and shall either resign his membership of the Board or dispose of his interest in such manner and within such time as the Board may direct.
(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided for in the regulations.
(2) If, for any reason, the Chairman is unable to attend any meeting of the Board, any other director nominated by the Chairman in this behalf, and in the absence of such nomination, any director elected by the directors present, from amongst themselves, shall preside at the meeting.
(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.
(4) Save as otherwise provided under sub-section (3), every director of the Board shall have one vote.
(1) The Board may constitute an Executive Committee consisting of such number of directors as may be provided for in the regulations.
(2) The Executive Committee shall discharge such functions as may be provided for in the regulations, or, as may be delegated to it, by the Board.
(3) The Board may constitute such other committees, whether consisting only of directors or only of other persons or partly of directors and partly of other persons, for such purpose or purposes, as it may think fit.
(4) The Executive Committee or any other committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided for in the regulations.
(1) No act or proceeding of the Board or of any Executive or other committee constituted by it shall be invalid merely on the ground of the existence of any vacancy in, or any defect in the constitution of, such Board, or committee, as the case may be.
(2) All acts done by a person acting in good faith as a member of the Board or of any committee constituted by it shall be valid, notwithstanding that it may afterwards be discovered that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision of this Act or any other law for the time being in force:
Provided that nothing in this section shall be deemed to give validity to any act of a member of the Board or of any committee after his appointment has been shown to the Reconstruction Bank to be invalid or to have terminated.
The directors and members of the committee shall be paid such fees and allowances as may be provided for in the regulations for attending the meetings of the Board or of any committee constituted in pursuance of this Act or for attending to any other work of the ReconstructionBank:
Provided that no fees shall be payable to the Chairman or to any other director or member who is an official of the Government, or, to a Deputy Governor of the Reserve Bank or to any official of the Development Bank or Reconstruction Bank.
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