FINANCIAL CORPORATIONS (AMENDMENT) ACT,2000
of new section for section 15
section 15 of the principal Act, the following section shall be substituted,
The Small Industries Bank shall, in consultation with the State Government
nominate a director as a Chairman of the Board for such period not exceeding
three years and on such terms and conditions as the Small Industries Bank
that the Chairman shall not be a whole-time director unless he also appointed
to function as the managing director:
further that the Chairman shall so long as the remains a director be eligible
for re-appointment as Chairman.
Chairman shall preside over the meetings of the Board and the general meetings
of the Financial Corporation.''.
of section 17
section 17 of the principal Act,-
for sub-section (1), the following sub-section shall be substituted, namely:-
The managing director shall-
sub-section (2), the following sub-section shall be inserted, namely:-
be appointed, in consultation with the Small Industries Bank, by the state
be a whole-time officer of the Financial Corporation;
perform such duties as the Board, by regulations, entrust or delegate to
hold office for such term not exceeding three years as the State Government
may specify and shall be eligible for re-appointment;
receive such salary and allowances and be subject to other terms and conditions
of service as the Board may, with the previous approval of the State Government,
Notwithstanding anything contained in sub-section (1), the State Government,
with prior consultation of the Small Industries Bank, shall have the right
to terminate the term of office of the managing director at any time, before
the expiry of the term specified under clause (d) of sub-section (1) by
giving him notice of not less than three months in writing of three months
salary and allowances in lieu of such notice and the managing director
shall also have right to relinquish his office at any time before the expiry
of term specified under clause (d) of sub-section (1) by giving to the
State Government notice of not less than three months in writing.''.
of new sections for section 18
section 18 of the principal Act, the following section shall be substituted,
(1) The Board shall constitute an executive Committee consisting of the
chairman and managing director, the whole-time directors and such other
directors as it may deem fit:
that in the case of a joint Financial Corporation, if the directors nominated
under clause (b) of section 10 represent different State Governments then,
all of them shall be members of the Executive Committee.
The Executive Committee shall discharge such functions as may be
prescribed or as may be delegated to it by the Board.
The Board may constitute such other committees whether consisting wholly
of directors or wholly of other persons or partly of directors and partly
of other persons for such purpose or purposes as it may think fit.
of section 19
section 19 of the principal act. Sub-sections (3A) and (4) shall be omitted.
of section 23
section 23 of the principal Act, the proviso shall be omitted.