Section 19
Ineligibility To Remain In Office Of Director
(1) No person shall remain in the office of Director of a bank or financial institution in any of the following circumstances: –
(a) If he or she does not possess the qualifications as referred to in Sections 16 or 17 or is disqualified pursuant to Section 18,
(b) In cases where a motion to remove from the office of a Director is adopted by a majority of the General Meeting at the recommendation of the group from which he/she was appointed to
the office of Director that is passed by the shareholders having representation of at least fifty one percent of the shares of the same group,
Explanation: For the purpose of this Section, “group” means a group of promoters and shareholders from the general public.
(c) If the resignation tendered by a Director from his/her position is approved,
(d) In case he or she commits any act that is not supposed to be committed under this Act or directives of Rastra Bank,
(e) If the Rastra Bank directs to remove from the office stating that since he or she carried out activities against the rights and interests of the bank or financial institution or of the depositors and as such he or she is not competent to perform the functions of a Director of the bank or financial institution.
(2) In cases where a bank or financial institution deems that any of its Directors is disqualified to remain in office of Director according to this Act or the Rastra Bank Act or he or she no more holds the position of Director, written information thereof shall be given to the Rastra Bank within fifteen days.
(3) The Rastra Bank may, if it has received in written form with regard to a Director that he/she is disqualified to remain in office pursuant to Sub-Section (2), issue appropriate direction after carrying out necessary enquiry.
(a) If he or she does not possess the qualifications as referred to in Sections 16 or 17 or is disqualified pursuant to Section 18,
(b) In cases where a motion to remove from the office of a Director is adopted by a majority of the General Meeting at the recommendation of the group from which he/she was appointed to
the office of Director that is passed by the shareholders having representation of at least fifty one percent of the shares of the same group,
Explanation: For the purpose of this Section, “group” means a group of promoters and shareholders from the general public.
(c) If the resignation tendered by a Director from his/her position is approved,
(d) In case he or she commits any act that is not supposed to be committed under this Act or directives of Rastra Bank,
(e) If the Rastra Bank directs to remove from the office stating that since he or she carried out activities against the rights and interests of the bank or financial institution or of the depositors and as such he or she is not competent to perform the functions of a Director of the bank or financial institution.
(2) In cases where a bank or financial institution deems that any of its Directors is disqualified to remain in office of Director according to this Act or the Rastra Bank Act or he or she no more holds the position of Director, written information thereof shall be given to the Rastra Bank within fifteen days.
(3) The Rastra Bank may, if it has received in written form with regard to a Director that he/she is disqualified to remain in office pursuant to Sub-Section (2), issue appropriate direction after carrying out necessary enquiry.