Section 36AB of Banking Regulation Act - Power of Reserve Bank to appoint additional directors and Section 36AC Part IIA to override other laws

Section 36AB of Banking Regulation Act 1949: Power of Reserve Bank to appoint additional directors

(1) If the Reserve Bank is of *[opinion that in the interest of banking policy or in the public interest or] in the interests of the banking company or its depositors it is necessary so to do, it may, from time to time by order in writing, appoint, with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the banking company.

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(2) Any person appointed as additional director in pursuance of this section-

(a) shall hold office during the pleasure of the Reserve Bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time as the Reserve Bank may specify;

(b) 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 or in relation thereto; and

(3) 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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*Subs. by s. 14, ibid., for "opinion that" (w.e.f. 1-2-1969)

**Proviso omitted by Act 1 of 1984, s. 31 (w.e.f. 15-2-1984)

Section 36AC of Banking Regulation Act 1949: Part IIA to override other laws

Any appointment or removal of a director, chief executive officer or other officer or employee in pursuance of section 36AA or section 36AB shall have effect notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or any other law for the time being in force or in any contract or any other instrument.