Section 15 in Banking Companies (Acquisition And Transfer of Undertaking) Act, 1969
15. Removal from office of directors, etc.-
(1)Every person holding office as Chairman, managing or whole-time director of an existing bank shall, on the commencement of this Act, be deemed to have vacated office and every other director of such bank (herein after referred to as the 'continuing directors') shall, until directors are duly elected by such existing bank, be deemed to continue to hold such office.(2)Until the Board of Directors of an existing bank is duly constituted by it, the continuing directors shall be deemed to constitute its Board of Directors or the continuing Board, as the case be, may transact all or any of the following business, namely : -(a)registration of the transfer or transmission of shares ;(b)arriving at an agreement about the amount of compensation payable under this Act or appearing before the Tribunal for obtaining a determination as to the amount of compensation ;(c)distribution to each share holder of the amount of compensation received b it under this Act for the acquisition of its undertaking ;(d)carrying on the business of banking in any country outside India if under the law in force in that country any bank, owned or controlled by Government, is prohibited from carrying on the business of banking there ;(e)carrying on any business other than the business of banking.(3)The Board of Directors of an existing bank, or its continuing Board, as the case may be, may authorise all such expenditure as its may think fit for discharging any of the functions referred to in sub-section.(2) and the Central Government may authorise the corresponding new bank to make an advance of the amount required by the existing bank in connection therewith and any amount so advanced shall be recouped from out of compensation payable to the existing bank under this Act.(4)Save as otherwise provided in sub-section (1), all officers and other employees of an existing bank shall become.on the commencement of this Act, officers and employees of the corresponding new bank and shall hold their offices or services in that bank on the same terms and conditions and with the same rights to pension, gratuity and other matters as would have been admissible to them if the undertaking of the existing bank had not been transferred to and vested in the corresponding new bank and continue to do so unless and until their employment in the corresponding new bank is terminated or until their remuneration, terms or conditions are duly altered by the corresponding new bank.(5)For the persons who immediately before the commencement of this Act were the trustees for nay pension, provident, gravity or other like fund constituted for the officers or other employees of an existing bank, there shall be substituted as trustees such persons as the Central Government may , by general or special order, specify.(6)Not withstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any officer or other employee form an existing bank to a corresponding new bank shall not entitle such officer or any other employee to an y compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
