The State Bank of India Act,1955
Section 19. Composition of the Central Board
(1) The Central Board shall consist of the following, namely :-
(a) A chairman 2[***] to be appointed by the Central Government in consultation with the Reserve Bank and after consideration, except in the case of first appointments, of the recommendations made by the Central Board in that behalf;
3[(b) such number of managing directors not exceeding four, as may be appointed by the Central Government in consultation with the Reserve Bank;]
(c) Six directors to be elected in the prescribed manner by the shareholders, other than the 1[Central Government], whose names are entered in the various branch registers:
Provided that if the total amount of the holdings of all such shareholders on any branch register three months before the date fixed for election is below two and a half per cent.of the total issued capital, all the directors to be elected by the shareholders on that register shall be nominated by the Reserve Bank, and such directors shall, for the purposes of this Act, be deemed to be directors elected under this clause;
(d) Eight directors to be nominated by the Central Government 2[***] to represent, as far as possible, territorial and economic interests and in such manner that not less than two of them have special knowledge of the working of co-operative institutions and or rural economy and the others have experience in commerce, industry, banking or finance;
(e) One director to be nominated by the Central Government; and
3[(f) one director, possessing necessary expertise and experience in matters relating to regulation or supervision of commercial banks to be nominated by the Central Government on the recommendation of the Reserve Bank.]
(2) Notwithstanding anything contained in clauses (b) and (c) of sub-section (1), on the first constitution of the Central Board all the directors referred to in the said clauses shall be appointed by the Central Government, and the directors so appointed shall, for the purposes of this Act, be deemed to have been appointed or elected, as the case may be, within the meaning of the said clauses.
(3) All directors of the Central Board first constituted, other than the chairman, vice-chairman and managing directors, shall retire at the expiry of two years from the appointed day.
1. The words “Reserve Bank” Subs. by Act No. 32 of 2007 w.e.f. 3-9-2007
2. Omitted by Act 27 of 2010 w.e.f. 24-8-2010.
3. Subs. by Act 27 of 2010 w.e.f. 24-8-2010.