(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act a Board to be called the Oil Industry Development Board.
(2) The Board shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said name sue and be sued.
(3) The Board shall consist of the following members, namely:--
(a) not more than three members to be appointed by the Central Government to represent the Ministry or Ministries of the Central Government dealing with petroleum and chemicals;
(b) two members to be appointed by the Central Government to represent the Ministry of the Central Government dealing with finance;
(c) not more than five members to be appointed by the Central Government to represent the Corporations, being Corporations owned or controlled by the Central Government, engaged in activities referred to in clause (k) of section 2;
(d) two members of whom one shall be appointed by the Central Government from amongst persons who, in the opinion of that Government, have special knowledge or experience of oil industry and the other shall be appointed by that Government to represent labour employed in the oil industry;
(e) the Secretary to the Board, ex officio.
(4) The Central Government shall appoint the Chairman of the Board.
(5) The term of office of the members of the Board (other than the members appointed by virtue of office) and the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, the members shall be such as may be prescribed.
(6) Subject to such conditions and restrictions as may be prescribed, the Board may constitute Standing Committees or ad hoc Committees for exercising any power or discharging any duty of the Board or for inquiring into, reporting and advising on, any matter which the Board may refer to them:
Provided that a Standing Committee shall consist exclusively of members of the Board.
(7) No act or proceeding of the Board or of any Committee constituted under sub-section (6) shall be invalidated merely by reason of--
(a) any vacancy in, or any defect in the constitution of, the Board or such Committee; or
(b) any defect in the appointment of a person acting as a member of the Board or such Committee; or
(c) any irregularity in the procedure of the Board or such Committee not affecting the merits of the case.