(1) No person may be a Director or a member of a Local Board who--
(a) isa salaried Government official 1*** 2***, or
(b) is, or at any time has been, adjudicated an insolvent, or has suspended payment or has compounded with his creditors, or
(c) is fund lunatic or becomes of unsound mind, or
(d) is an officer or employee of any bank, or
3[(e) is a Director of banking company within the meaning of clause (c) of section 5 of the 4[Banking Regulation Act, 1949 (10 of 1949)], or of a co-operative bank.]
(2) No two persons who are partners of the same mercantile firm, or are Directors of the same private company, or one of whom is the general agent of or holds a power of procuration from the other, or from a mercantile firm of which the other is a partner, may be Directors or members of the same Local Board at the same time.
(3) Nothing in clause (a), clause (d) or clause (e) of sub-section (1) shall apply to the Governor, or to a Deputy Governor or to the Director nominated under clause (d) of sub-section (1) of section 8.
1The words "or a salaried official of a State in India" omitted by the A.O. 1950.
2The words "or Burma" omitted by Act 11 of 1947, s. 8 (w.e.f. 1-4-1947). Earlier inserted by the M.O. 1937.
3Subs. by Act 23 of 1965, s. 3, for clause (e) (w.e.f. 1-3-1966).
4Subs. by Act 51 of 1974, s. 3, for "Banking Companies Act, 1949" (w.e.f. 13-12-1974)