(1) The directors of a bank or financial institution shall be appointed by the general meeting of the bank or financial institution, subject to Section 18 and the articles of association. Provided that,-
(a) Until the first annual general meeting of the bank or financial institution is held, directors shall be appointed by the promoters.
(b) In the event of any vacancy in the post of a director prior to the holding of the annual general meeting, the Board may appoint a director for the remainder of term.
(c) In the case of a bank or financial institution in which a corporate body holds shares, the concerned corporate body may appoint director(s) in a number proportionate to the value of the shares held by it.
(2) While appointing director in proportion to the shares of the bank or financial institution held by it, a body corporate, foreign bank or financial institution may also appoint alternate director authorizing him/her or them to work during the absence of the director.
(3) The professional expert director as referred to in Sub- section (2) of Section 12 shall be appointed by the Board of Directors.