The State Financial Corporations (Amendment) Act,2000
Section 9. Substitution of new sections for sections 11 and 12
For sections 11 and 12 of the principal Act, the following sections shall be substituted, namely:-
“11. Term of office and retirement of directors.
(1) A nominated director shall hold office during the pleasure of the authority nominating him
(2) Subject to the provisions of sub-section (1), a nominated director shall hold office for such term not exceeding three years and shall also be eligible for re-nomination: Provided that no such director shall hold office continuously for a period exceeding six years
(3) An elected director other than a director deemed to be elected under the first proviso to clause (d) of section 10 shall hold office for three years and shall also be eligible for re-election: Provided that no such director shall hold office continuously for a period exceeding six years
“12. Disqualifications for being a director.
No person shall be a director, if he-
(a) Has been found to be of unsound mind by a court of competent jurisdiction and the finding is in force; or
(b) Is or at any time has been, adjudicated as insolvent or has suspended payment of his debts or has compounded with his creditors; or
(c) Has been convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment of not less than six months and a period of five years has not elapsed from the date of expiry of the sentence; or
(d) Is elected by the persons referred to in clause (d) of sub-section (3) of section 4 but not registered as shareholder in his own right of unencumbered shares of a nominal value of not less than ten thousand rupees in the Financial Corporation; or
(e) has not paid any call in respect of shares of the Financial Corporation held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call.”