State Bank of India Act, 1955

31. Meetings of the Central Board

(1) The Central Board 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 be prescribed.

(2) All question at the meeting shall be decided by a majority of the votes or the directors present and in the case of equality of votes, the chairman or, in his absence, the vice-chairman shall have a second or casting vote.

(3) A director who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal entered into or proposed to be entered into by or on behalf of the State Bank shall at the earliest possible opportunity disclose the nature of his interest to the Central Board and shall no be present at any meeting of the Central Board when any such contract, loan, arrangement or proposal is discussed unless his presence is required by the other directors for the purpose of eliciting information, and no director so required to be present shall vote on any such contract, loan, arrangement or proposal :

⁷⁶ [Provided that nothing contained in this sub-section shall apply to such direct 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 as defined in 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 or to which the State Bank has entered into or made, or proposes to enter into or make, a contract, loan, arrangement or proposal; or

(ii) a director ex-officio of the State Bank or a director of a subsidiary Bank;] ⁷⁷[or]

⁷⁷ [(iii) an officer or other employee of the State Bank, if he is a director appointed under clause (ca) or clause (cb) ⁵⁸[***] of section 19.]

(4) If for any reason neither the chairman not the vice-chairman is able to be present at a meeting of the Central Board, any director ⁷⁸[***], authorized by the chairman in writing in this behalf, and in the absence of such authorization, ⁷⁹[any director] elected by the directors present from amongst themselves, shall preside at the meeting and, in the event of equality of votes, shall have a second or casting vote.

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