(1) The Central Government may, after consulting the Reserve Bank, remove from office ¹[the chairman ²*** or a managing director.]

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(3) The Central Government, ⁴*** may remove from office any director ⁵[appointed under clause (ca) or clause (cb) or nominated under clause(d) ⁶[of section 19] ⁷[or any member of a Local Board nominated under clause (c) of sub-section (1) of section 21] and ⁸[appoint or nominate, as the case may be], in his stead another person to fill the vacancy.

(4) The shareholders, other than the ⁹[Central Government], may, by a resolution passed by majority, of the votes of such shareholders holding in the aggregate not less than one-half of the share capital held by all such shareholders, remove any director elected under clause (c) ¹⁰***of section 19 and elect in his stead another person to fill the vacancy.

¹¹* * * * *

(6) No person shall be removed from his office under sub-section (1) ¹²*** or sub-section (3) unless he has been given an opportunity of showing cause against his removal.

1. Subs. by Act 73 of 1976, s. 4, for “the chairman or the vice-chaiman” ( w.e.f. 11-6-1976).
2. The word “, vice-chairman” omitted by Act 27 of 2010, s. 18 (w.e.f. 15-9-2010).
3. Omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-1976).
4. The words “after consulting the Reserve Bank,” omitted by Act 27 of 2010, s. 18 (w.e.f. 15-9-2010).
5. Subs. by Act 48 of 1973, s. 8, for “nominated under clause (d)” (w.e.f. 1-7-1974).
6. Subs. by Act 3 of 1994, s. 14, for “sub-section (1) of section 19” (w.e.f. 15-10-1993).
7. Ins. by Act 35 of 1964, s. 8 (w.e.f. 1-12-1964).
8. Subs. by Act 48 of 1973, s. 8 for “nominate” (w.e.f. 1-7-1974).
9. Subs. by Act 32 of 2007, s. 8, for “Reserve Bank” (w.e.f. 29-6-2007).
10. Certain words omitted by Act 3 of 1994, s. 14 (w.e.f. 15-10-1993).
11. Omitted by s. 14, ibid. (w.e.f. 15-10-1993).
12. The words, bracket and figure “or sub-section (2)” omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-1976).