Clause 123 - Composition of Board - Finance Bill, 2015

Composition of Board 123. (1) The Board shall consist of such number of executive and nominee members, as may be appointed and notified by the Central Government in the Official Gazette. (2) The executive members shall include the Chief Executive Officer of the Agency. (3) The nominee members shall consist of-- (a) a nominee of the Central Government; and (b) a nominee of the Reserve Bank. (4) The duration of office and other conditions of service of the Chairperson and other Members of the Board shall be such, as may be prescribed. (5) Notwithstanding anything contained in sub-section (4), the Central Government shall have the right to terminate the services of a Member of the Board, at any time before the expiry of the period prescribed under sub-section (4), by giving him notice of not less than three months in writing or three months salary and allowances in lieu thereof, and the Member shall also have the right to relinquish his office, at any time before the expiry of the period prescribed under sub-section (4), by giving to the Central Government a notice of not less than three months in writing. (6) The Central Government shall remove a Member of the Board from office, if he-- (a) is, or at any time has been, adjudicated as insolvent; or (b) is of unsound mind and stands so declared by a competent court; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude; or (d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest: Provided that no Member shall be removed, unless he has been given a reasonable opportunity of being heard in the matter. (7) The Board may, by order in writing, allocate functions of the Agency under this Chapter to the Chairperson or any other Member or employee of the Agency, subject to any conditions that may be specified in the order. (8) The Agency shall make bye-laws to govern its internal functioning. (9) No act or proceeding of the Agency shall be invalid merely by reason of-- (a) any vacancy or any defect, in the establishment of the Agency; or (b) any defect in the appointment of a Member of the Agency; or (c) any irregularity in the procedure of the Agency not affecting the merits of the case.