4. Constitution of the Corporations.—
1[(1) The general superintendence, direction and management of the affairs and business of each of the Corporations shall vest in a Board of directors which may exercise all such powers and do all such acts and things as may be exercised or done by the Corporation under this Act.
(lA) The Board of directors shall consist of a Chairman to be appointed by the Central Government, and not less than eight and not more than fourteen other directors to be appointed by the Central Government and the Chairman or any other director may be required to render whole-time or part-time service as the Central Government may direct:
(a) the same person may be appointed to be the Chairman of both the Corporations or Chairman of one and director of the other;
(b) the same persons may be appointed to be directors of both the Corporations.]
(2) Before appointing a person to be a 1[director] of either of the Corporations, the Central Government shall satisfy itself that person will have no such financial or other interest as is likely to affect prejudicially the exercise or performance by him of his functions as a 1[director] of the Corporation and the Central Government shall also satisfy itself from time to time with respect to every 1[director] of the Corporation that he has no such interest; and any person who is, or whom the Central Government proposes to appoint and who has consented to be 1[director] of the Corporation shall, whenever required by the Central Government so to do, furnish to it such information as the Central Government considers necessary for the performance of its duties under this sub-section.
(3) A 1[director] of either of the Corporations who is in any way directly or indirectly interested in a contract made or proposed to be made by the Corporation, or in any contract made or proposed to be made by an associate of the Corporation which is brought up for consideration by the Corporation, shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest at a meeting of the Corporation; and the disclosure shall be recorded in the minutes of the Corporation, and the 1[director] shall not take any part after the disclosure in any deliberation or decision of the Corporation with respect to that contract.
(4) During the temporary absence of the Chairman of either of the Corporation, the Central Government may appoint another person, whether a 1[director] of the Corporation or not, to act as the Chairman.
(5) Save as otherwise provided in this section, nothing contained in this Act shall be deemed to disqualify the 1[managing director] of either of the Corporations from being appointed to be a 1[director] thereof.
1. Subs. by Act 49 of 1971, sec. 2 (w.e.f. 1-2-1972).