Section 17: Qualifications and disqualifications of Directors and Members

17. Qualifications and disqualifications of Directors and Members.___(1) No person not appointed by the 2[Federal Government] to serve as a Director or Member shall be qualified to serve as a Director or Member unless he is a holder in his own right of unencumbered shares of the Bank to the nominal amount of ten thousand rupees at the least. (2) No person shall be qualified to serve as a Director or Member___ 9[* * * * * * *] 10[*] (b) if he is a salaried officer of any Government 11[,whether within or without Pakistan, and is] not authorised by the 2[Federal Government] to serve as a Director or Member 12[;] 13[(c) if he has been convicted of an offence involving moral turpitude; (d) if he was at any time in the service of the Bank and was dismissed or his services had been terminated by the bank; (e) if he is a Director of any commercial bank other than a bank sponsored or established by or under the authority of the 2[Federal Government] or the State Bank of Pakistan for the development of industry or agriculture in the country, or a bank which is a society registered under the Cooperative Societies Act, 1912 (Act II of 1912) or any other law for the time being in force in Pakistan relating to co-operative societies; (f) if he is in the employment of any banking company, whether on salary or on commission, or is engaged in the performance of any continuous service for remuneration for any such company; 14* 1 Second proviso added . by the National Bank of Pakistan (Amdt.) Ordinance, 1960 (52 of 1960 ), s.7 2 Subs. by the National Bank of Pakistan (Amdt.) Act, 1973 (11 of 1973), s. 6, for “Central Government”. 3 Sub-section (2) omitted ibid. 4 The original words “and Deputy Managing Director” omitted ibid. 5 Subs. ibid. for “their respective terms”. 6 The original words “or Deputy Managing Director” omitted ibid. 7 Subs. by F.A.O., 1975, Art. 2 and Table, for “Central”. 8 Added by the National Bank of Pakistan (Amdt.) Ordinance, 1970 (14 of 1970), s. 3. 9 The original cl. (a) omitted by the National Bank of Pakistan (Amdt.) Ordinance, 1962 (61 of 1962), s. 2. 10 The original word “or” omitted by the National Bank of Pakistan (Amdt.) Ordinance, 1960 (52 of 1960), s. 8. 11 Subs. ibid., “in Pakistan”. 12 Subs. ibid., for full-stop. 13 New cls. (c) to (g) added, ibid. 14 Omitted by the National Bank of Pakistan (Amdt.) Ordinance, 1970 (14 of 1970), s. 4. 1[(g) if he is for the time being disqualified for membership of any body established by or under any law (P.O 13 of 1959) for the time being in force of which the Constituent members are wholly or partly chosen by means of election 2[;] 2[(h) if having been a Director or Member, his office as such has been vacated, or deemed to be vacated under the provisions of clause (h) of sub-section (3); or (i) If he has vacated his office as Director or, as the case may be, Member under clause (i) of sub-section (3) unless a period of three years has elapsed since the date he so vacated his office.]. (3) The office of a Director or Member shall be vacated___ (a) if the person holding it resigns his office or dies; (b) if he accepts or holds any other office of profit under the Bank; (c) if he is, or at any time has been, adjudicated an insolvent, or compounds with his creditors or suspends payment; (d) if he is found lunatic, or becomes of unsound mind; (e) if he has absented himself from three consecutive meetings of the Central or a Local Board, as the case may be, or from all such meetings for a continuous period of six months, whichever is longer, without leave of absence from the Board concerned; 3[*] (f) if he ceases to hold in his own right the amount of shares required to qualify him for the office 4[;] 5[*] 6[(g) if he incurs any of the disqualifications mentioned in sub-section (2) 7[;] 8[(h) if, in relation to the Bank he has failed to pay any advance, loan or credit limit or any installment thereof or interest thereon, or any amount due on any guarantee, or to do or perform any act agreed or undertaken in writing to be done or performed by him, and such failure continues for a period of one month after notice in writing has been served on him by the Bank calling upon him to make the payment or to do or perform the act; or (i) if he has been a Director or Member for a continuous period of six years from the date when he was first elected as such Director or Member or, as the case may be, was appointed by name and otherwise than by designation of office, as such Director or Member.] 9[Explanation.___ In computing the period of six years for the purpose of this clause any break of less than three years in the continuity of office shall be disregarded.]. (4) No two persons who are partners of the same mercantile firm, or who 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, shall be eligible or qualified to serve as Directors of the Central Board, or as Members of the same Local Board at the same time 10[:] 1 Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and II Sch. 2 Subs. and added by Ord. 14 of 1970, s. 4. 3 The original word “or” omitted by the National Bank of Pakistan (Amdt.) Ordinance, 1960 (52 of 1960), s. 8. 4 Subs. ibid., for full-stop. 5 The word “or” which was added ibid., have been omitted by the National Bank of Pakistan (Amdt.) Ordinance, 1970 (14 of 1970), s. 4. 6 Cl. (g) added ibid. 7 Subs. by Ord. 14 of 1970, s. 4. 8 Added, ibid. 9 Added by the National Bank of Pakistan (Amdt.) Act, 1973 (11 of 1973), s. 4. 10 Subs. omitted and added by the National Bank of Pakistan (Amdt.) Ordinance, 1970 (14 of 1970), s. 4. 1[* * * * * * *] 1[(5) Nothing in sub-section (1), or in clause (b) of sub-section (2), or in clauses (b) and (i) of sub-section (3) shall apply to the Managing Director or an officer nominated by the Managing Director or an officer nominated by the Managing Director under the proviso to clause (a) of section 15.].

Effective date: 1949-01-01

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