State Bank of India (Subsidiary Banks Laws) Amendment Act,2007
Section 13. Amendment of Section 25
In Section 25 of the State Bank of India (Subsidiary Banks) Act,-
(i) in sub-section (1)-
(a) for clause (a), the following clause shall be substituted, namely:-
“(a) the Chairman for the time being of the State Bank, ex officio or an official of the State Bank or of the subsidiary bank nominated by him as Chairman, with the approval of the Reserve Bank;”;
(b) for clause (b), the following clause shall be substituted, namely:-
“(b) one director, possessing necessary expertise and experience in the matters relating to regulation or supervision of commercial banks, to be nominated by the Reserve Bank;”
(c) for clause (d), the following clause shall be substituted, namely:-
“(d) not more than three directors to be elected in the following manner, namely:-
(i) if the total amount of holdings of the shareholders (other than the State Bank) of a subsidiary bank is more than one per cent of the total issued capital, and equal to or less than sixteen per cent of such capital, one director to be elected, in the prescribed manner, by such shareholders and two directors shall be nominated by the State Bank, or
(ii) if the total amount of holdings of the shareholders (other than the State Bank) of a subsidiary bank is more than sixteen per cent of the total issued capital and equal to or less than thirty-two per cent of such capital, two directors to be elected in the prescribed manner by such shareholders and one director shall be nominated by the State Bank, or
(iii) if the total amount of holdings of the shareholders (other than the State Bank) of a subsidiary bank is more than thirty-two per cent of the total issued capital, all the three directors to be elected, in the prescribed manner, by such shareholders:
Provided that in case, the total amount of holdings of the shareholders of a subsidiary bank (other than the State Bank) is not more than one per cent of the total issued capital, all three directors shall be nominated by the State Bank and such directors shall, for the purposes of this Act, be deemed to be directors elected under this clause.
Explanation
For the purposes of this sub-section, the total amount of holdings of the shareholders (other than the State Bank) whose names are on the register of shareholders of the subsidiary bank three months before the date fixed for election of directors shall be taken into account.”;
(ii) sub-section (3) shall be omitted;
(iii) in sub-section (4), the words “the Reserve Bank or” shall be omitted.
State Bank of India (Subsidiary Banks Laws) Amendment Act,2007
