Section 6 in The Small Industries Development Bank Of India (General Regulations), 2000*
6. No director or member to deal with matters with which he is personally concerned .-(1) Every director of the Board and every member of the Executive Committee who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into, by or on behalf of the Small Industries Bank shall disclose the nature of his concern or interest at a meeting of the Board or the Executive Committee, as the case may be :
Provided that it shall not be necessary for a director or member to disclose his concern or interest in any such contract or arrangement proposed to be entered into with a company or a foreign company within the meaning of the Companies Act, 1956 (1 of 1956), where the concern or interest consists only in his holding either singly or together with any other director or directors of the Board or any other member or members of the Executive Committee, in the aggregate not more than two per cent. of the paid-up share capital in such company.(2)(a)In the case of a proposed contract or arrangement, the disclosure required to be made by a director of the Board or member of the Executive Committee under sub-regulation (1) shall be made at the meeting of the Board or the Executive Committee, as the case may be, at which the question of entering into contract or arrangement is first taken into consideration, or if the director or member, was not, at the date of that meeting concerned or interested in the proposed contract or arrangement, at the first meeting of the Board or the Executive Committee, as the case may be, held after he becomes so concerned or interested.(b)In the case of any other contract or arrangement, the required disclosure shall be made at the first meeting of the Board or the Executive Committee, as the case may be, held after the director or member becomes concerned or interested in the contract or arrangement.(3)(a)For the purpose of sub-regulations (1) and (2) a general notice given by a director or a member, to the Board or to the Executive Committee, as the case may be, to the effect that he is a director or a member of a specified body corporate or is a member of a specified firm and is to be regarded as concerned or interested in any contract or arrangement which may after the date of the notice, be entered into with that body corporate or firm, shall be deemed to be a sufficient disclosure of concern or interest in relation to any contract or arrangement so made.(b)A director or a member giving a general notice to the Board or Executive Committee under clause (a) shall as soon as possible give notice of any change in the particulars contained therein.(c)No such general notice, (no notice of any change therein), be of effect unless either it is given at a meeting of the Board or the Executive Committee, as the case may be, or the director or member concerned, takes reasonable steps to secure that it is brought upon and read at the first meeting of the Board or the Executive Committee as the case may be, after it is given.(4)No director of the Board and no member of the Executive Committee, shall, as a director or member, as the case may be, take any part in the discussion of, or vote on, any contract or arrangement entered into or to be entered into by or on behalf of the Small Industries Bank, if he is in any way, whether directly or indirectly, concerned or interested in such contract or arrangement, nor shall his presence count for the purpose of forming a quorum at the time of such discussion or vote; and if he does vote, his vote shall be void:Provided that nothing herein contained shall apply to any contract or arrangement entered into or to be entered into with a public company within the meaning of the Companies Act, 1956 (1 of 1956) or a private company within the meaning of that Act, which is a subsidiary of any such public company in which the interest of the director consists solely :-(i)in his being :-(a)a director of such company, and(b)the holder of not more than shares of such number of value therein as is requisite to qualify him for appointment as a director thereof, he having been nominated as such director by the Small Industries Bank, or(ii)in his being a member holding not more than two percent, of the paid-up share capital of such company.
