(1) Where any arrangement entered into by the Institution with a borrowing entity while granting loans and advances provides for the appointment or nomination by the Institution of one or more directors of such entity, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 2013 (18 of 2013), or in any other law for the time being in force or in the memorandum and articles of association or any other instrument relating to the entity, and any provision regarding share qualification, age limit, number of directorships, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Institution in pursuance of the arrangement as aforesaid.
(2) Any director appointed as aforesaid shall---
(a) be deemed to be an independent director under the Companies Act, 2013 (18 of 2013) for the purpose of immunities available to independent directors;
(b) hold office during the pleasure of the Institution and may be removed or substituted by any person by order in writing of the Institution;
(c) not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto;
(d) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.