Section 27(1) in The State Bank Of India (Subsidiary Banks) Act, 1959
(1)A person shall be disqualified to be a director of a subsidiary bank, if--(a)he holds the office of director, provisional director, promoter, agent, or manager of any banking company or a banking company for the formation of which a prospectus has been issued; or(b)he is a salaried officer of Government; or(c)he has been removed or dismissed from the service of Government or a local authority or a corporation or a company in which not less than fifty-one per cent. of the paid-up share capital is held by Government; or(d)he holds any office of profit under the subsidiary bank [other than the office of the managing director] [Inserted by Act 48 of 1973, Section 24 (w.e.f. 1-7-1974)]; or(da)[ in the case of a director appointed under clause (ca) or clause (cb) of sub-section (1) of section 25,-- [Sub-section (3) omitted by Act 66 of 1988, Section 19 (w.e.f. 30-12-1988)](i)he is not serving in the subsidiary bank or has not been serving in it for a continuous period of at least five years; and(ii)he is of such age that there is a likelihood of his attaining the age of superannuation during his term of office as a director; or](e)he is, or at any time has been, adjudicated an insolvent or has suspended payment of his debts or has compounded with his creditors; or(f)he is of unsound mind and stands so declared by a competent court; or(g)he is, or has been, convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or(h)in the case of an elected director, he is not registered as a holder of unencumbered shares in the subsidiary bank of a nominal value of at least one thousand rupees:Provided that the disqualification mentioned in clause (b) shall not apply to an officer of the Central Government nominated as a director under clause (e) of sub-section (1) of section 25:[Provided further that in the case of a director appointed under clause (ca) or clause (cb) of sub-section (1) of section 25, the disqualification mentioned in clause (d) shall not operate:Provided also that] [Substituted by Act 48 of 1973, Section 24, for "Provided further that" (w.e.f. 1-7-1974)] in the case of a director deemed to have been elected on the first constitution of the Board of Directors, the disqualification mentioned in clause (h) shall not operate for a period of six months from his becoming such director.
