REGISTERED NO. DL-33004/94 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 53] NEW DELHI, MONDAY, JUNE 6,1994/JYAISTHA 16, 1916 Separate paging is given to this Part in order that it may be filed as a separate compilation MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 6th June, l994/Jyastha 16, 1916 ( Saka) The following Act of Parliament received the assent of the President on the 3rd June, 1994, and is hereby published for general information: — THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) AMENDMENT ACT, 1994 No. 37 OF 1994 [3rd June, 1994.]
An Act further to amend the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:—
CHAPTER I PRELIMINARY
1. (1) This Act may be called the Banking Companies (Acquisition and Transfer of Undertakings) Amendment Act, 1994.
(2) It shall come into force on such date as the Central Government may, by-notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act.
Short title and commence.
ment.
2 Ifjfc GAZETTE OF INDIA EXTRAORDINARY [PARI II—
CHAPTER II AMENDMENTS TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970 Amendment of section 2.
2. In section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) AcL, 1970 (hereafter m this Chapter referred to as the Bank Nationalisation Act),—
(i) after clause (f), the following clause shall be inserted, namely:— '(fa) "prescribed" means prescribed by regulations made under this Act;'; ;
(H) after clause (h), the following clause shall be inserted, namely:— 5 of 1970.
"(i) words and expressions used herein and not denned either in this Act or in the Banking Regulation Act, 1949 but defined in the Companies ACL, 1956 shall have the meanings respectively assigned to them in tho Companies Act, 1956.".
10 of 1949 1 of 1956.
Substitution of new heading for heading of Chapter II.
3. In Chapter II of the Bank Nationalisation Act, for the heading "TRANSFER OF THE UNDERTAKINGS OF EXISTING BANKS", the following heading shall be substituted, namely: — "TRANSFER OF THE UNDERTAKINGS OF EXISTING BANKS AND SHARE CAPITALS OF THE CORRESPONDING NEW BANKS".
Amendment of section
3.
4. In section 3 of the Bank Nationalisation Act, fur sub-sections (2A) and (3) t the following sub-sections shall be substituted, namely:— - - \(2A) Subject to the provisions of this Act, the authorised capital of every corresponding new bank shall be one thousand five hundred crores of rupees divided into one hundred fifty crores fully paid-up shares of ten rupees each:
Provided that the Central Government may, after con&ultalion with the Reserve Bank and by notification in the Official Gazette, increase or reduce the authorised capital as it thinks fit, so however that after such increase or reduction, the authorised capital shall not exceed three thousand crores or be less than one thousand five hundred crores, of rupees.
(2B) Notwithstanding anything contained in sub-section
(2), the paid-up capital of every corresponding new bank constituted under sub-sectjon (1) may from time to time be increased by— («) such amounts as the Board of Directors of the corresponding new bank may, after consultation with the Reserve Bank and with the previous sanction of the Central Government, transfer from the reserve fund established by such bank to such paid-up capital;
SEC. 1] THE GA/ETTF OF 1NDJA EXl RA0RD1NARY 3
(b) such amounts as the Central Government may, after consultaiicn with the Reserve Bank, contribute to such paid-up capital;
(c) such amounts as the Board of Directors of the corresponding nrw bank may, after consul! ati on with th e Reserve Bank and with the previous sanction of 'he Central Government, raiae by public issue of shares in such manner as may be prescribed, ro. however that the Central Government r.hall, at all times, hold not less than fifty-one per cent, of the paid-up capital of each corresponding new bank.
(2C) The entire paid-up capital of a corresponding new bank, except tho paid-up capital raised by pttbUc issue under clausie (c) of sub-sectjon (2B), shall stand vested in, and allotied to, the Central Government.
(2D) The shares of every corresponding new bank not held by the Central Gnvernmpnt shall be freely transferable:
Provided ilint no individual or company resident outside Tndia or any company Incorporated under any law not in. force in India or any branch of such company, whether resident outside India or not.
shall at anv time hold or acnuirc bv transfer or otherwise shares of the corresponding new bank so that such invesirrent in aggregate exceed the percentage, noi beine more than twenty per cent., of the paid-up canitq] n$ mav be sppn'fipd bv ihc Central Government bv notification 'n tha Official Oarette
Explanation —For the purposes of this clause, "company" mews any body cornorate and includes a firm or other alssociniinn of individuals (?E) ~̂ o shareholder of (h/1 corresponding nrw hank, other than the Central Government, shall be entitled to nxorcise voting rights in respect of TOV shares hold bv him in PVCPSS of one} per opnt of thp total voting rights of all the shareholders of the corresponding new bank.
(?F) "Every corresponding new bank shall keep at its head office a register, in one or morr books, of t^r- shareholders (in this Act referred to as the register) and shall enter therein the following particulars:—
(i) tbe names, addresses and occupations, If any, of the shareholders and fi statement of the shares held bv each sharpholder, distinguish in? each share bv its, denoting number;
(H) the date on which each person is so entered â a fcbirpholder;
(ni) the dare o^n which anv n^rson cºases to be a shareholderand
(iv) oreri otrn*r partVulara av mav bp proscribrd.
C?G) Notwithstanding m^thinrf contrir-cd in ^'u-section (?^), it ^haH be lavfnl for m^ri- corro^nonding PP'V bfi^k +o Vrpp thp register in computer flonr)ip<5 01 di^kctteg subiect to •such safeguards as may be prescribed, 4 THE GAZETTE OF INDIA EXTRAORDINARY [FAIT II—
(3) Notwithstanding anything contained! in the Indinn Evidence Act, 1872, a copy of, or extract from, the register, certified to be a true copy under the hand of an officer of thu corresponding new bank authorised in this behalf by it. shall, in. all legal proceedings, be admissible in evidence.'.
I of 1872.
Insertion of new section 3A.
5. After section 3 of the Bank Nationalisation Act, the following section shall be inserted, namely:— Trust not to be entered on the register.
"3A. Notwithstanding anything contained in sub-sedion (.?F) of section 3, no notice of any trust, express, implied or constructive, shall be entered on the register, or be receivable, by the corresponding new bank.".
Amendment of section 9.
fl. In section 9 of the Bank Nationalisation Act,—
(i) in sub-section (2), in clause (a), the words ",so however that the paid-up capital of any such bank shall not be in excess of rupees one thousand five hundred crores1' shall be omitted;
(H) for sub-s«ction (.?), the following sub-sections shall be substituted, namely: — ' (3) Every Board of Directors of a corresponding new bank, constitute under any scheme made under sub-section (1), shall Include—
(a) not more than two whole-time director.^ to be appointed by the Central Government after consultation with the Reserve Bank;
(b) one director who is an official of the Central Government to be nominated bv 'he Central Government.
Provided that no such director shall be a director of any other corresponding new bank.
Exvlctnatiow.—For the purposes of 'his clause, 'he expression ''corresponding new bank" shall include n ecu responding new bank within the meaning of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980; 40 of 1980.
(c) one director who is an officer of the Reserve Bank to be nominated by the Central Government on the recommendation of the Reserve Bank,
Explanation.—For ihc purpose of this clause, "an officer of the Reserve Bank" includes an officer of the Reserve Bank who is deputed bv that Bank undpr section 54AA of the Reserve Bank of India Act. 1934 to any institution referred to there'n:
2 of 1934.
(d) not more than two directors to be nominated by the Central Government from amongst the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992, the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture antt 1 5 o f l l > ( > 2 SEC. I] THE GAZETTE OF INDIA EXTRAORDINARY 5 61 of 1981.
1 of 1956.
Rural Development Act, 1981, public financial institutions as specified in sub-section (1), or notified from time to time under sub-section (2) of section 4A of the Companies Act, 1956 and other instiiutions established or constituted by or under any Central Act or incorporated under the Companies Act, 1956 and having not less than fifLyJone per ceni. of the paid-up share capita] held or controlled by <he Central Government 14 of 1947.
((J) one director, from among such of ihe employees of ihe corresponding new bank who are workmen under clause (s) of section 2 of the Industrial Di&putes Act, U)47_ to be nominated by the Central Government in such manner as may be specified in a scheme made under this section;
14 of 1947.
(f) one director, from amom* the employee;-, of the corresponding new bank who are not workmen under clause (s) of section 2 of the Industrial Disputes Act, 1947, to be nominated by the Central Government after consultation with the "Reserve Bank;
(g) one director who has been a Chartered Accountant for not less than fifteen years to be nominated by the Central Government after consultation wi'h the Reserve Bank;
(h) subject to the provisions of clause (i), nor more than six directors to be nominated by the Ceniral Government;
(i) where the capital issued under clause (c) of subsection (2B) of section (3) is— (J) nor more than twenty per cent of the totnl paid-up capital, not more than two directors, (II) more than twentv per cent, but nnt more than forty ner cent, of the total paid-uo caniial, not more than four directors, (III) more than fortv per cent. of 'he <ot;<1 paid-up capital, not more than six directors, to be elected by the shareholders, other rhan *ĥ Central Government, from amongst themselves:
Provided that on ihe assumption of chnr-'c afte*- election of any such directors under this clause, equal number of directors nominated 'Under clause r(h} shall retire in such manner as may be specified in the scheme.
(3^) The directors to be nominated under clause (h) or in be elected under clause ('"* if sub-section H) shall-- (A) have speeni \'nowleds.fe or practical experience In respect of one or more of the following mailers, namely: —
(i) agricultural and rural economy,
(ii) banking, 6 ZHE GAZETTE OF INDIA ^XrRAORDJNARY [P^Rr II— {in) co-operation,
(iv) economics, (i>) finance,
(vi) law,
(vh) small scale industry,
(mn) any other matter the special knowledge of, and practical experience in, which would, in the opinion of the Reserve Bank, be useful to the corresponding new bank;
(B) represent the interests of depositors; or (C) represent the interests of farmers, workers and artisans.
(3B) Where the Reserve Bank is of the opinion that any director of a corresponding new bank elected under clause (i) of sub-section (J) does not fulfil the requirements of sub-section (.'A), it may, after giving to such director and the bank a reasonable opportunity of being heard, by order, remove such director and on such removal, the Board of Directors shall co-opt any other person fulfilling the requirements of sub-section (^A) as a director in place of the person so removed till a director is duly elected by the shareholders of the corresponding new bank in the next annual general meeting and the person so co-opted shall be deemed to have been duly elected by the shareholders of the corresponding new bank as a director '.
Amendment of section ]0.
7. In section 10 of the Bank Nationalisation Act,
(i) in sub-soction (7), for the words "shall transfer the balance of profits to the Central Government", (he words "rnnv, out of its net profits, d.-clare a dividend and retain the surplus, if any" shall be substituted;
(H) in sub-section (7A), after the words ''the Central Government", the worrle "and to the "Reserve Bank" ^hai] he inserted Insertion oi new section 10A.
8, After sect'on 10 of the Bank Nationalisation Act, the following lection shall be inserted, namely: — Annuaj general meeting.
"10A (!) A tfoner?! meeting fin this Act referred to as an annual Ejmeral meeting) of every corresponding new bank which has issued capital under clause (c) of sub-section (2B) of section 3 shall be held at the place of the head office of the bank in each year at such time as shall from time t0 time be specified by the Board of Directors:
Provided that such annual general meeting shall be held before the expW of six weeks from the date on which the balancesheet, together with the profit and loss account and auditor's report is, under sub-section (7A) of section 10, forwarded to thp Central Government or to the Reserve Bank, whichever date is earlier.
SEC. U THE GAZETTE OF INDIA EXTRAORDINARY 7
(2) The shareholders present at an annual general meeting shall be entitled to discuss the balance-sheet and the profit and loss account of the corresponding new bank made up to the previous 31st day of March, the report of the Board of Directors on the working and activities of the corresponding new bank for the period covered by the accounts and the auditor's report on the balance-sheet and accounts.".
9. In section 19 of the Bank Nationalisation, Act, in sub-seciion (2), after clause (b), the following clauses shall be inserted, namely:— "(ba) the nature of shares of the corresponding new bank, the manner in which and the conditions subjecL to which shares may be held and transferred and generally all matters relating to the rights and duties of shareholders;
(_bb) the maintenance of register, and the particulars to be entered in the register in. addition to those specified in sub-section (2F) of section 3, the safeguards to be observed in the maintenance of register on computer floppies or diskettes, inspection and closure of the register and all other matters connected therewith;
(be), the manner in which general meetings shall be convened, the procedure to be followed thereat and the manner in which voting rights may be exercised;
(bd) the holding of meetings of shareholders and the business to be transacted thereat;
(be) the manner in which notices may be served on behalf of the corresponding new bank upon shareholders or other persons;
(bf) the manner in which the directors nominated under clause
(h) of sub-section (3) of section 9 shall retire;".
Amendment of section
19.
CHAPTER III AMENDMENTS TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980 40 of 1980,
10. In section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 [heieafter in this Chapter referred to as #ie Bank (Second) Nationalisation Act],—
(i) after clause (d), the following clause shall be inserted, namely: — '(da) "prescribed" means prescribed by regulations made under this Act;';
(H) after clause (e), the following clause shall be inserted, namely: — Amendment of section 2, 10 0* 1949.
1 Of 1956.
" (f) words and expressions used herein and not defined either in this Act or in the Banking Regulation Act, 1949 but denned in the Companies Act, 1956 shall have the meanings respectively assigned to them in the Companies Act, 1956.".
8 THE GAZETTE OF INDIA EXTRAORDINARY TPART II— Substitution of new heading for heading of Chapter II, 11' In Chapter II of th e Bank (Second) Nationalisation Act. for the heading "TRANSFER OF THE UNDERTAKINGS OF EXISTING BANKS", the following heading shall be substituted, namely: — "TRANSFER OF IHE UNDERTAKINGS OF EXISTING BANKS AND SHARE CAPITALS OF THE CORRESPONDING NEW BANKS".
Amendment of section 3.
12. In section 3 of the Bank (Second) Nationalisation Act, for subsections (2A) and (3), the following sub-sections shall be substituted, namely: — \2A) Subject i.o the provisions of this Act, the authorised capital of every corresponding new bank shall be one thousand five hundred crores of rupees divided into one hundred and fifty crorea fully paid-up shares of ten rupees each:
Provided that the Central Government, may, aifier consultation with the .Reserve Bank and by notification i n the Olllcial Ga/ette, increase or reduce the authorised capital as it ihmks ht} so however that after such increase or reduction, the authorised capital shall not exceed three thousand crores or be less than one thousand Jive hundred crores, of rupees.
(-B) NotwjtnsLanding anything contained in sub-se«¥ion (2), the paid-up capital of every corresponding new bank constiiuied under sub-section (1) may from time to time be increased by—
(a) such amounts as the Board of Directors of ihe corresponding new bank may, after consultation with the Reserve iSanK and with the previous sanction of the Central Government, ' transfer from the reserve fund established by such bank to such paid-up capital;
(b) such amounts as the Central Government may, after consultation with the Reserve Bank, contribute to such paid-up capital;
(c) auch amounis as the Board of Directors of (he corresponding new bank may, after consuliation with the Reserve Bank and wiih the previous sanction of ihe Central Government, raise by public issue of shares in such manner as may be prescribed, so however that the Central Government shall ri all limes.
hold not less than fifty-one per cent, of the paid-up capita] of each corresponding new bank.
(2C) The entire paid-up capital of a corresponding new bank, except the paid-up capital raised by public issue under clause (c) of sub-section (2B), shall stand vested in, and allotted to, the Central Government.
(2D) The shares of every corresponding new bank not held 1>y the Central Government shall be freely transferable:
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9
Provided that no individual or company resident outside India or any company incorporated under any law not in force in India or any branch of such company, whether resident outside India or not, shall at any time hold or acquire by transfer or otherwise shares of the corresponding new bank so that such investment in aggregate exceeds the percentage, not being more than twenty per cent, of the paid-up capital, as may be specified by the Central Government by notification in the Official Gazette.
Explanation.—For the purposes of this clause, "company" means any body corporate and includes a firm or other association of individuals.
(222) No shareholder of the corresponding new bank, other than the Central Government, shall be entitled to exercise voting rights in respect of any shares held by him in excess of one per cent. of the total voting rights of all the shareholders of the corresponding new bank.
(2F) Every corresponding new bank shall keep at its head office a register, in one or more books, of the shareholders (in this Act referred to as the register) and shall enter therein the following particulars:—
(i) the names, addresses and occupations, if any, of the shareholders and a statement of the shares held by each shareholder, distinguishing each share by its denoting number;
(H) the date on which each person is so entered as a sharekolder;
(iii) the date on which any person ceases to be a shareholder; and
(iv) such other particulars as may be prescribed.
(2G) Notwithstanding anything contained in sub-section (2F), it shall be lawful for every corresponding new bank to keep the register in computer floppies or diskettes subject to such safeguards as may be prescribed.
J off 1872.
(3) Notwithstanding anything contained in the Indian Evidence Act, 1872, a copy of, or extract from, the register, certified to be a true copy under the hand of an officer of the corresponding new bank authorised in this behalf by it, shall, in all legal proceedings, be admissible in evidence.'.
13. After section 3 of the Bank (Second) Nationalisation Act, the following section shall be inserted, namely:— Insertion of new section
3A.
"3A. Notwithstanding anything contained in sub-section (2F) of section 3, no notice of any trust, express, implied! or constructive, shall be entered on the register, or b© receivable, by the corresponding new banfeC*.
Trust not to be entered on the register.
10 Idt. GAZETTfc OF INDIA EXTRAORDINARY [PAM II-.
14. In section 9 of the Bank (Second) Nationalisation Act,— Amendment of section 9.
(i) in sub-section (2), in clause (a), the words ", so however that the paid-up capital of any such bank shall n o t be in excess of rupees one thousand five hundred crores" shall be omi"ed;
(B) for sub-section (3), the following sub-sections shall be substituted, namely: — \3) Every Board of Directors of a correspoding new bank, constituted under any scheme made under sub-sectaon (1), j»hall include—
(a) not more than two whole-time directors to be appointed by the Central Government after consultation with the .Reserve Bank;
(b) one director who is an official of the Central Government to be nominated by the Central Government:
Provided that no such director shall be a director of any other corresponding new bank.
Explanation.—For the purposes of this clause, the expression "corresponding new bank" shall include a corresponding new bank within tthe meaning of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;
(c) one director who is an officer of the Reserve Banfc to be nominated by the Central Government on the recommendation of the Reserve Bank.
Explanation—For the purpose of this clause, "an officer of the Reserve Bank" includes an officer of the Reserve Bank who is deputed by that Bank under section 54AA of the Reserve Bank of India Act, 1934 to any institution referred to therein;
5 of 1970.
(d) not more than two directors to be nominated by the Central Government from amongst the Securities Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992, the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981, public financial institutions as specified in sub-section (1), or notified from time to time under sub-section (2), of section 4A of (Jie Companies Act, 1956 and other institutions established or constituted by or under any Central Act or incorporated under the Companies Act, 1&56 and having not less than fifty-one per cent, of the paid-up share capital held or controlled by the Central Government;
2 of 1934.
15 ot 1992.
16 Of 1981.
1 ot 1956.
(e) one director, from among such of the employees of the corresponding new bank who are workmen under clause (s) of section 2 of the Industrial Disputes Act, 1947, to be nominated by the Central Government in such manner as may be specified in a scheme made under this section;
14 of 194T.
SEC 1] THE GAZETTE OF INDIA EXTRAORDINARY U 14 of 1947.
(/) one director, from among the employees of the corresponding new bank who are not workmen under clause (s) of section 2 of the Industrial Disputes Act, 1947, to be nominated by the Central Government after consultation with the Reserve Bank;
(g) one director who has been a Chartered Accountant for not less than fifteen years to be nominated by the Central Government after consultation with the Reserve Bank;
(h) subject to the provisions of clause (0 not more than six directors to be nominated by the Central Government;
(0 where the capital issued under clause (c) of subsection (2B), of section 3 iŝ — (I) not more than twenty per cent, of the total paid-up capital not more than two directors, (H) more than twenty per cent, but not more than forty per cent, of the total paid-up capital, not more than four directors, (III) more than forty per cent, of the total paidup capital, not more than six directors, to be elected by the shareholders, other than the Central Government, from amongst themselves:
Provided that on the assumption of charge after election of any such directors under this clause, equal number of directors nominated under clause (h) shall retire in such manner as may be specified in the scheme.
(3A) The directors to be nominated under clause (h) or to* be elected under clause (i) of sub-section (3A) shall— (A) have special knowledge or practical experience in respect of one or more of the following matters, namely: —
(i) agricultural and rural economy,
(ii) banking,
(in) co-operation, (it?) economics,
(v) finance,
(vi) law,
(wii) small-scale industry, (iriii) any other matter the special knowledge of, and practical experience in, which would, in the opinion of the Reserve Bank, be useful to the corresponding new bank;
(B) represent the interests of depositors; or (C) represent the interests of farmers, workers and artisans.
12 THE GAZETTE OF INDIA EXTRAORDINARY [PARr II— (3B) Where the Reserve Bank is of tie opinion that any director of a corresponding new hank elected under clause (0 of sub-section (3) does not fulfil the ̂ requirements of sub-section ( M ) , it may, After giving *o su#j durecfear and the bank a reasonable opportunity o£ being hearsLby order, remove such director and on such removal, «he Board of Directors shall co-opt any other person fulfilling the requirements of sub-section (3A) as a director in place of the person so removed till a director is duly elected by the shareholders of tthe corresponding new bank in the next annual general meeting and the person so co-opted shall be deemed to have been duly elected by the shareholders of the corresponding new bank as a director.1.
Amendment of section 10.
15. In section 10 of the Bank (Second) Nationalisation Acfc-
(i) in sub-section (7), for the words "shall transfer the balance of profits to the Central Government the words "may, out of i t s net profits, declare a dividend and retain tfce surplus, if >a«y" shall, be substituted;
Hi) in subsection (7A), after the words "the Central Government", the words "and to the Reserve Bank" shall be inserted.
Inserticw of new section
10A.
16. After section 10 of the Bank (Second) Nationalisation Act, the following section shall be inserted, namely:— Annual general meeting.
"10A. (1) A general meeting (in this Act refewed to as aa annual general meeting) of every corresponding new **?*>* *" S f < £ * a l under ciuse (c) of subjection {2B), of section 3 shall beheld at the place of the head office of the bank m each y e ^ at ]££1!L! aTstoll from time to time be specified by the Board of Directors:
Provided that such annual general meeting shall be held before the e S £ y ot sfac weeks from the date on which the b^lance-^eet, ^ e S T w i t h the profit and loss account and auditor's report » , Z i e r sub-section (7A) of section 10, forwarded to the Central Government or to the Reserve Bank, whichever date is earlier.
(2) The shareholders present at an annual general meeting shall be entitled to discuss the balanc^eet and the profit and to* account of the corresponding new ban!, .*•«*» ** to *»**?º£ 31st day of March, the report of the Board of Directors on the work- S g Z activities of the corresponding new bank f*.the period «^ered by the accounts and the auditor's report on the balance sheet and accounts.".
Amendment of section
19.
tf In section 19 of the Bank (Second) Nationalisation Acfc in^- «etten 5 ) ! 5 t e r clause (b), » • foUowipg clause* shall be inserted, namely:— the rights and duties of shareholders;
SFX. 1J THE GAZETTE OF INDIA EXTRAORDINARY ];, (6b) the maintenance of register, and the particulars r<> be entered in the register in addition to those specified in sub-section {2F) of section 3, the safeguards to be observed in. rh<* mainfenance of register on computer floppies or diskette^ inspMeiiiw atui tlusi r>* of tho ra^ElciE ftnd nil ev&hrr r>attcra roroi'-tuci, therewith;
(be); the manner in which general meetings shall be convened, the procedure to be followed thereat and the manner m which voiin<;
rights may be exercised;
(bd) the holding of meetings of shareholders and the busmen 10 be transacted thereat;
(be) the manner in which notices may be served on behalf o£ the corresponding new bank upon shareholders nr oiher parfon^;
(bf) the manner in which the directors nomma^ed under clauso
(h) of sub-section (3) of section 9 shall retire."
K. L. MOHANPUEAI Secy, to the Govt of India.
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