Section 41B: Power of the State Bank to supersede Board of Directors of a banking company

41B. Power of the State Bank to supersede Board of Directors of banking company.--(1) Where the State Bank is satisfied that-- (a) the association of the Board of Directors (by whatever name called) of a banking company is or is likely to be detrimental to the interests of the banking company or its depositors or otherwise undesirable; or (b) for all any of the reasons mentioned in sub-section (1) of section 41A; it is necessary so to do, the State Bank may, for reasons to be recorded in writing, by order, supersede the Board of Directors of a banking company with effect from such date and for such period as may be specified in the order. (2) The period of supersession specified in an order under sub-section (1) may from time to time be extended by the State Bank so, however, that the total period of supersession does not exceed 1[three] years 2[or for such extended period as may be specified by the Governor, State Bank of Pakistan]. (3) All powers and duties of the Board of Directors shall, during the period of super session, be exercised and performed by such person as the State Bank may from time to time appoint in this behalf. (4) The provisions of sub-sections (2), (3), (4) and (5) of section 41A shall, with the necessary modifications, apply to an order made under sub-section (1) or sub-section (3).

Effective date: 1962-06-07

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