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The State Bank of India Act, 1955

Chapter V — MANAGEMENT

Section 24Removal from office of directors, etc

Read in the full Act
Section 24: Removal from office of directors, etc

24. Removal from office of directors, etc

(1)

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

(3)

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

(4)

The shareholders, other than the [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) ***of section 19 and elect in his stead another person to fill the vacancy.

* * * * *

(6)

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

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