(1) The Board of directors of a Regional Rural Bank shall meet at such time and place and shall observe such rules of procedure in regard to the transaction of business at its meetings as may bo prescribed.
(2) The Chairman of the Regional Rural Bank shall preside over every meeting of the Board, and, in his absence, such director as the Chairman may generally, or in rckVdon to any particular meeting, authorise in this behalf shall preside; and, in the absence of both the Chairman and the director so authorised, the directors present at the meeting shall elect one from among themselves to preside over the meeting.
Explanation.—For the purposes of this sub-section, "absence from a meeting" means non-attendance for any reason whatsoever at the meeting, or any part of the meeting during which any business is transacted.
(,3) All questions at a meetin? of the Board shall be decided by a majority of the votes of the dim.'ors present and voting; and, in case of equality of votes, the person presiding shall have a second or casting vote.
Meetings of Board.
652 THE GAZETTE OF INDIA EXTRAORDINARY [PART 11-
(4) No director shall, as a director, take part in the discussion of, or vote on, any contract, loan, arrangement or proposal, entered into or to be entered into, by or on behalf ol the Regional Rutal Bank, if he is, in any! way, whether directly or indirectly, interested in the contract, loan arrangement or proposal and shall, at the earliest possible opportunity disclose to the Board the; nature of his interest in such contract, loan arrangement or proposal, nor shall his presence count for the purpose of forming any quorum at the time of any such discussion or vote, and, if he does vote, his vote shall be void:
Provided that nothing contained in this sub-section shall apply tc such director by reason only of his being—
(i) a shareholder (other than a director) holding not more than two per cent, of the paid-up capital in any public company within the meaning of the Companies Act, 1956, or any corporation established by or under any law for the time being in force in India or any co-operative society, with which the Regional Rural Bank has entered into, or proposes to enter into, any contract, loan, arrangement or proposal; or
(ii) a director of the Regional Rural Bank as such.
1 of 1956.
15. The Board may constitute such committees whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons, as it may think fit for such purposes as it may decide.
Committees of Board.
16. Every director and every member of a committee shall be paid such fees and allowances as may be prescribed:
Provided that no fees shall be paid to tb e Chairman or any other director if he is an officer of the Central Government, State Government, the Reserve Bank, Sponsor Bank or any other bank.