The Small Industries Development Bank of India Act,1989
Section 7. Managing Director
(1) The Development Bank shall appoint a Managing Director of the Small Industries Bank who shall be the whole-time chief executive of that Bank.
(2) Subject to the provisions of section 5 and, save as otherwise provided in regulations made under this Act, the power of general superintendence, directions and management of the affairs and business of the Small Industries Bank shall vest in the Managing Director who shall also exercise such powers and perform such duties as may be delegated to him by Board or the Chairman.
(3) The Managing Director shall, in exercise of his powers and performance of his duties under this Act, follow such directions as the Board or the Chairman may give.
(4) The salary, allowances and other conditions of service of the Managing Director shall be such as may by the Development Bank.
(5) The Managing Director shall hold office for such term not exceeding five years as the Development Bank may specify in this behalf and shall be eligible for reappointment.
(6) The Development Bank may remove the Managing Director at any time after giving him a reasonable opportunity of showing cause against the proposed removal.
(7) Notwithstanding anything contained in sub-section (5) and (6), the Development Bank shall have the right to terminate the term of office of the Managing Director at any time by giving him notice, in writing, of not less than three months or three month’s salary and allowances in lieu thereof, and the Managing Director shall also have the right to relinquish his office at any time by giving to the Development bank notice, in writing, of not less than three months.