Section 12(8) in The Nationalised Banks (Management And Miscellaneous Provisions) Scheme, 1970
(8)A Director who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal entered into or proposed to be entered into by or on behalf of the Nationalised Bank shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest to the Board and shall not be present at the meeting of the Board when any such contract, loan, arrangement or proposal is discussed unless his presence is required by the other Directors for the purpose of eliciting information and no Director so required to be present shall vote on any such contract, loan, arrangement or proposal:[Provided that nothing contained in this sub-clause shall apply to such Director by reason only of his being -(i)a share-holder (other than a Director) holding not more than two per cent. of the paid-up capital in any public company as defined in 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 or to which the Nationalised Bank has entered into or made or proposed to enter into or make, a contract, loan, arrangement or proposal, or(ii)an officer or other employee of the Nationalised Bank, if he is a Director [referred to in clause (e) or clause (f) of sub-section (3) of section 9 of the Act.]
