Section 6(4) in The Small Industries Development Bank Of India (General Regulations), 2000*
(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.
