(1) Every Custodian of a corresponding new bank and every officer of the Central Government and of the Reserve Bank and every officer or other employee of a corresponding new bank, shall be indemnified by such bank against all losses and expenses incurred by him In or In relation to the discharge of his duties except such as have been caused by his own wilful act or default.
(2) A director or member of a local board or committee of a con-es* ponding new bank shall not be responsible for any loss or expense caused to such bank by the insufficiency or deficiency of the value of, or title to, any property or security acquired or taken on behalf of the corresponding new bank, or by the insolvency or wrongful act of any customer or debtor, or by anything done in or in relation to the execution of the duties of his office, unless such loss, expense, insufficiency or deficiency was due to any wilful act or default on the part of such director or member.
Custodian to be public servant.
Certain defects not to invalidate acts or proceedings.
Indemnity.
45 of 1860.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 139
17. Any reference to any existing bank in any law, other than this Ordinance, or in any contract or other instrument shall, in so far as it relates to its undertaking which has been transferred by section 4, be construed as a reference to the corresponding new bank-
18. No provision of law relating to winding up of corporations shall apply to a corresponding new bank and no corresponding new bank shall be placed in liquidation save by order of the Central Government and in such manner as It may direct.
19. (?) The Board of Directors of a corresponding new bank may, after consultation with the Reserve Bank and with the previous sanction of the Centra] Government, make regulations, not inconsistent with the provisions of this Ordinance and any scheme made thereunder, to provide for all matters for which provision is expedient for the purpose of giving effect to the provisions of this Ordinance.
(2) In particular, and without prejudice to the generality of the foregoing power, the regulations may provide for all or any of the following matters, namely: —
(a) the powers, functions and duties of local boards and restrictions, conditions or limitations, if any, subject to which they may be exercised or performed, the formation and constitution of local committees and committees of local board (including the number of members of any such committee), the powers, functions and duties of such committees, the holding of meetings of local committees and committees of local boards and the conduct of business thereat;
(b) the manner in which the business of the local boards shall be transacted and the procedure in connection therewith;
(c) the delegation of powers and functions of the board of directors of a corresponding new bank to the general manager, director, officer or other employee of that bank;
(d) the conditions or limitations subiect, to which the corresponding ncjw bank may appoint officers, advisers and other employees and fix their remuneration and other terms and conditions of service;
(e) the duties and conduct of officers, advisers and o+hcr employees of the corresponding new bank;
(f) th'e establishment and maintenance of superannuation, pension, provident or other funds for the benefit of officers or employees of the corresponding new bank or of the dependents of such officers or employees and the granting of superannuation allowances, annuities and pensions payable out of such funds;
(q) the conduct and defence of legal proceedings bv or against the corresponding new bank and the manner of signing pleadings;
(7i) the provision of a seal for the corresponding new bank and the manner and effect of its use;
(i) the form and manner in which contracts binding on the corresponding new bank may be executed;
Referonces to existing banks on and from the commencement of this Ordinance.
Dissolution, Power to make regulations.
l 4 o THE GAZETTE OF INDIA EXTRAORDINARY [PART II
(j) the conditions and the requirements subject to which loans or advances may be made or bills may be discounted or purchased by the corresponding new bank;
(7c) the persons or authorities who shall administer any pension, provident or other fund constituted for the benefit of officers or employees of the corresponding new bank or their dependants;
(I) the preparation and submission of statements of programmes of activities and financial statements of the corresponding new bank and the period for which and the time within which such statements and estimates are to be prepared and submitted; and
(m) generally for the efficient conduct of the affairs of the corresponding new bank.
(3) Until any regulation is nuade under sub-section (1), the articles of association of the existing bank and every regulation, rule, bye-law or order made by the existing bank shall, if in force at the commencement of this Ordinance, be deemed to be the regulations made under sub-section (1) and shall have effect accordingly and any reference therein to any authority of the existing bank shall be deemed to be a reference to the corresponding authority of the corresponding new bank and until any such corresponding authority is. constituted under this Ordinance, shall be deemed to refer to the Custodian.