Section 86D: Effect of the Control of the Bank on any Commercial Bank or Financial Institution

1) While bank takes control of any commercial bank or financial institution by issuing order under the provision of the Clause (o) of sub-section (1) of Section 86C, for the management and operation of transaction respective commercial bank or financial institution; the directors, manager and employees of such commercial bank or financial institution have to provide the assets, material goods and all transaction and its report and other necessary cooperation and facilities to the bank or the official appointed by the bank.

2) While bank takes control of any commercial bank or financial institution by issuing order under the provision of the Clause (o) of sub-section (1) of Section 86C, the official appointed by the bank for the management and operation of transaction of such commercial bank or financial institution, being within the limitation of order issued by the bank have to manage and operate such commercial bank or financial institution in the name of such commercial bank or financial institution by taking control of the property and transaction unless the bank decide otherwise for such order.

3) Notwithstanding any provision contained in the prevailing law, the appointed official for management and operation of any commercial bank or financial institution which is in the control of the bank, can exercise all the rights conferred to such commercial bank or financial institution, its board of directors, shareholders or manager by prevailing law, memorandum and article association of such commercial bank or financial institution and such official can exercise the act assigned for the general meeting or special general meeting or any rights by any other way of such commercial bank or financial institution.

4) Till the date of validity of the order issued by the bank to take the control of any commercial bank or financial institution, no director, manager or employee removed under the provision of Clause (n) of the sub-section (1) of Section 86C and suspended director under the Clause (o) of such commercial bank or financial institution, can be involve in the management or take any remuneration or facility from such commercial bank or financial institution during the period of being problematic without written permission of the bank or the official appointed for the management and operation of such commercial bank or financial institution.