Section 29 in The National Bank For Agriculture And Rural Development (Amendment) Act ,2000
29. Insertion of new section 52A.-
After section 52 of the principal Act, the following section shall be inserted, namely:-" 52A. Agreement with National Bank on appointment of directors to prevail.-(1)Where any agreement entered into by the National Bank wit a company or a body corporate while granting loans and advances, provides for the appointment by the National Bank of one or more directors of such company or body corporate, such provisions and any appointment of directors made in pursuance thereof shall be valid and effective, notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956 ) or in any other law for the time being in force, or in the memorandum, articles of association or any other instrument relating to the company or body corporate, and any provision regarding share qualification, age- limit, number of directorships, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the National Bank in pursuance of the agreement as aforesaid.(2)Any director appointed as aforesaid shall-(a)hold office during the pleasure of the National Bank and may be removed or substituted by any person by order in writing of the National Bank;(b)not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto;(c)not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.".
