Section 19: Circumstances for ineligibility to remain in office of Director

1) No person shall remain in the office of the Director of the bank or financial institution in any of the following circumstances:-

(a) If having no qualifications as referred to in Section 16 or 17 or is ineligible pursuant to Section 18,

(b) In case the motion to remove from the office of a Director is passed by a majority of the general meeting at the recommendation of the group from which he/she is appointed to the office of Director that is passed by the shareholders having representation of at least 51 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) In case the resignation tendered by a Director from his/her position is approved,

(d) In case of commission of any act that is not supposed to be committed under this Act or directives of Rastra Bank,

(e) In case the Rastra Bank directs to remove from the office stating that since a Director has committed acts against rights and interests of the bank or financial institution or of the depositors and since he/she is not competent to carry out works as in the office of a Director of the bank or financial institution.

2) In case a bank or financial institution deems that any of its directors is ineligible to remain in the office of the Director according to this Act or the Rastra Bank Act or is no more in the office, 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 ineligible to remain in the office as stated in sub-section (2), issue appropriate direction after carrying out the necessary enquiry.