Section 64 in The Small Industries Development Bank Of India (General Regulations), 2000*
64. Nomination of directors .-(1) The nomination of directors under clause (d) of sub-section (1) of section 6 of the Act shall be made by the first three shareholders amongst the Development Bank, the Public Sector Banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government holding maximum number of equity shares.
(2)In case the number of shareholders holding equal second largest number of equity shares is more than three, the nomination of three directors shall be made by such shareholders by consensus amongst themselves and in the absence of such consensus, the nomination shall be made by draw of lots.(3)In case the number of shareholders holding equal second largest number of equity shares is more than two, the nomination of two directors shall be made by such shareholders by consensus amongst themselves and in the absence of such consensus , the nomination shall be made by draw of lots.(4)In case the number of shareholders holding equal third largest number of equity shares is more than one, the nomination of one director shall be made by such shareholders by consensus and in the absence of consensus the nomination shall be made by draw of lots.(5)Notwithstanding anything contained in sub-regulations (1) to (4) of this regulation, no shareholder shall be entitled to nominate more than one director.
