Section 12 of The Small Industries Development Bank of India Act, 1989
Executive Committee and other committees.
1[12. Executive Committee and other committees.-- (1) The Board shall constitute an Executive Committee consisting of the chairman and managing director, the whole-time directors and such other directors as it may deem fit.
- (2)The Executive Committee shall discharge such functions as may be prescribed or as may, without prejudice to the provisions contained in section 34, be delegated to it by the Board.
- (3)The Board may constitute such other committees whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons for such purpose or purposes as it may think fit.
- (4)The Executive Committee or any other committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.]
Summary
- The Board is required to create an Executive Committee.
- This Executive Committee must include the chairman and managing director, the whole-time directors, and any other directors the Board selects.
- The Executive Committee performs tasks prescribed to it or tasks delegated by the Board under the delegation powers of Section 34.
- The Board can also create other committees made entirely of directors, entirely of non-directors, or a mix of both.
- All committees must meet at specific times and places and follow prescribed rules of procedure.
Practical examples
FAQ
1. Who is guaranteed a spot on the Executive Committee?
The chairman and managing director, as well as the whole-time directors, are automatically included.
2. Can a committee include people who do not work for the bank at all?
Yes, the Board can constitute other committees consisting wholly or partly of other persons who are not directors.
3. How does the Executive Committee know what work to do?
It discharges functions that are prescribed or that are specifically delegated to it by the Board, acting within the limits set by Section 34.
Test yourself
Q1.Under Section 12 of The Small Industries Development Bank of India Act, 1989, which individuals must be part of the Executive Committee?
Q2.Under Section 12 of The Small Industries Development Bank of India Act, 1989, how can the Board construct "other committees" besides the Executive Committee?
Q3.Under Section 12 of The Small Industries Development Bank of India Act, 1989, the Executive Committee takes on tasks delegated by the Board. Based on the cross-reference to Section 34, what rule applies to this delegation?
Q4.Under Section 12 of The Small Industries Development Bank of India Act, 1989, how are the meeting times and procedural rules for these committees determined?