(1) The general superintendence, direction and management of the affairs and business of the Trust shall vest in a Board of Trustees which may exercise all powers and do all acts and things which may be exercised or done by the Trust.
(2) The Board shall, in discharging its functions under this Act, act on business principles, regard being had to the interest of the unit holders.
The Board of Trustees shall consist of the following, namely:-
(a) the Chairman to be appointed by the 1* [Central Government in consultation with the Development Bank];
2*[(aa) one trustee to be nominated by the Reserve Bank];
(b) Four trustees to be nominated by the 1*[Development Bank], of whom not less than three shall be persons having special knowledge of, or experience in, commerce, industry, banking finance or investment;
(c) One trustee to be nominated by the Life Insurance Corporation;
(d) One trustee to be nominated by the State Bank;
(e) Two trustees to be elected in the prescribed manner by the contributing institutions referred to in Cl. (d) of sub-section (2) of Section4; and
(f) An executive trustee to be appointed by the 1*[Development Bank):
Provided that if the appointment of the Chairman is whole-time, it shall not be necessary to appoint an executive trustee: Provided further that on the first constitution of the Board, the trustees referred to in Cl. (e) shall be nominated by the Reserve Bank and shall hold office for a period of twelve months from the date of their nomination or until two trustees are elected under the said clause, whichever may be earlier.
10A - 1* Transitional provision for continuance of Chairman and certain trustees of the Board
Every person holding office, immediately before the notified date, as Chairman under Cl. (a) of Section 10 or as trustee, not being an officer of the Reserve Bank, nominated under Cl. (b) of that section or as executive trustee appointed under Cl. (f) thereof shall, notwithstanding the amendment of this Act by the Public Financial Institutions Laws (Amendment) Act, 1975, continue, subject to the same conditions, to hold office for the unexpired portion of his term.]
(1) A trustee nominated1[under Cl. (aa) or] under Cl. (b) of Section 10, if he is an officer of the Reserve Bank2*[or the Development Bank] or a trustee nominated under Cl. (c) or Cl. (d) of that section shall hold office during the pleasure of the authority nominating him.
(2) A trustee nominated1*[under Cl. (aa) or] under Cl. (b) of Section 10, if he is not an officer of the Reserve Bank1[or the Development Bank] or a trustee elected under Cl. (e) of that section shall hold office for four years and thereafter until his successor is duly nominated or elected.
(3) A casual vacancy in the office of a trustee referred to in sub-section (2) or in the office of a trustee nominated under the second proviso to Section 10 shall be filled by election or nomination, as the case may be, and the trustee so elected or nominated shall hold office for the unexpired portion of the term of his predecessor: Provided that no such vacancy occurring within three months of the date of the expiry of the normal term of office of such trustee need be filled under this sub-section.
(4) A trustee nominated under the second proviso to Section 10 or a trustee nominated in his place under sub-section (3) of this section shall be deemed to be a trustee elected under Cl. (e) of Section 10.
(5) A person who holds, or who has held, office as a trustee shall, subject to the other provisions of this Act, be eligible for re-nomination or re-election, as the case may be.
(a) Becomes subject to any of the disqualifications mentioned in Section 12; or
(b) Is absent without leave of the Board from more than three consecutive meetings thereof; or
(c) Being a trustee elected or deemed to be elected under Cl. (e) of Section 90 becomes an officer or other employee of Government or of the Reserve Bank,1[or of the Development Bank] State Bank, a subsidiary bank or the Trust;his office shall thereupon become vacant.
(2) A trustee nominated under Cl. (b) of Section 10 who is not an officer of the Reserve Bank2[or of the Development Bank] or a trustee elected or deemed to be elected under Cl. (e) of that section may by letter addressed to the Board resign his office and on such resignation being accepted by the Board shall be deemed to have vacated his office.
(1) The appointment of a Chairman or of an executive trustee may be either whole-time or part-time:
Provided that if the appointment of the Chairman is part-time, the appointment of the executive trustee shall be whole-time.
(2) Chairman or the executive trustee shall-
(a) hold office for such term not exceeding five years as the1*[Development Bank] may specify 2*[and shall be eligible for re-appointment];
(b) receive such salary or allowances or both from the Trust and be governed by such terms and conditions of service as the 1*[Development Bank] may determine; and
(c) perform such functions as the Board may entrust or delegate to him.
14A - 3*Emergency powers of the whole-time Chairman
If the Chairman, whose appointment is whole-time is of opinion that circumstances exist which render it necessary for him to take immediate action in respect of any matter which is within the competence of the Board and that the interests of the Trust may be prejudicially affected if such action is deferred until after the next meeting of the Board, then, notwithstanding anything contained in Cl. (c) of sub-section (2) of Section 14, the Chairman may take such action in respect of that matter as he deems necessary and for such purpose, he may exercise all powers and do all acts and things which may be exercised or done by the Board, but in every such case, he shall, as soon as may be after the action is taken, make a written report to the Board containing a statement of the action taken and the circumstances under which it was taken.]
If the Chairman or the executive trustee is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment, the1*[Development Bank] may nominate another person to act in his place until the date on which the Chairman or the executive trustee, as the case may be, resumes his duties.
Trustees, other than the Chairman and the executive trustee, shall be paid such fees and allowances for attending the meetings of the Board or of any of its committees and for attending to any other work of the Trust, as may be prescribed:
Provided that no fees shall be payable to a trustee who is an officer of Government or of any corporation established by law for the time being in force.
(1) The Board shall meet not less than six times a year and at least once in every two months and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.
(2) The Chairman, or, if for any reason he is unable to attend any meeting of the Board, any other trustee nominated by him in this behalf or, in the event of such nominated trustee also being unable to attend the meeting or no such nomination having been made by the Chairman, any other trustee elected by the trustees present at the meeting from among 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 trustees present and voting, and, in the event of equality of votes the Chairman, or in his absence, the person presiding, shall have a second or casting vote.
(1) There shall be an Executive Committee which shall consist of-
(a) The Chairman of the Board,
(b) Where an executive trustee has been appointed by the1[Development Bank], such executive trustee, and
(c) Two other trustees nominated in this behalf by the1*[Development Bank].
(2) The Chairman of the Board shall be the Chairman of the Executive Committee.
(3) Subject to such general or special directions as the Board may from time to time give, the Executive Committee shall be competent to deal with the matter within the competence of the Board.
(4) The Board may constitute such other committees whether consisting wholly of trustees or wholly of other persons or partly of trustees and partly of other persons as it thinks fit and for such purpose as it may decide.
(5) 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 prescribed.
(6) The members of a committee (other than the trustees) shall be paid such fees and allowances for attending its meetings and for attending to any other work of the Trust, as may be prescribed:
Provided that no fees shall be payable to a member who is an officer of Government or of any corporation established by any law for the time being in force.
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