Section 14(4) in THE REGIONAL RURAL BANKS ACT, 1976
(4)No director shall, as a director, take part in the discussion of, or vote on, any contract, loan, arrangement or proposal, entered into or to be entered into, by or on behalf of the Regional Rural Bank. ------------------------Subs. by Act 1 of 1988, s. 9, for sub-section (2) (w.e.f. 28-9-1988). 269 if he is, in any way, whether directl or indirectly, interested in the contract, loan, arrangement or proposal and, where a director is interested in any such matter, he shall, at the earliest possible opportunity, disclose to the Board the nature of his interest in such contract, loan, arrangement or proposal, and where he does so, his presence at the meeting shall not count for the purpose of forming any quorum at the time of any such discussion or vote, and if he does vote, his vote shall be void: Provided that nothing contained in this sub-section shall apply to such director by reason only of his being-- (i) a shareholder (other than a director) holding not more than two per cent of the paid-up capital in any public company within the meaning of the Companies Act, 1956 (1 of 1956), or any corporation established by or under any law for the time being in force in India or any co-operative society, with which the Regional Rural Bank has entered into, or proposes to enter into, any contract, loan, arrangement or proposal; or (ii) a director of the Regional Rural Bank as such.
