Central Bank Act, 1942
Panel for appointment of the first banking Directors.
26.—(1) Not more than thirty nor less than ten days before the appointed day, the Minister shall appoint a time and place (in this section referred to as the appointed time and place) for the meeting of representatives of the Associated Banks for the election of the panel from which the first banking Directors are to be appointed.
(2) The Minister shall cause every Associated Bank to be informed in writing of the appointed time and place.
(3) Every Associated Bank may cause one, and only one, representative nominated by it in that behalf to attend at the appointed time and place, and the several such representatives who attend at that time and place shall then or within three days thereafter elect, in accordance with the Rules contained in the Second Schedule to this Act, a panel of six persons eligible and willing to act as banking Directors, and shall forthwith communicate to the Minister in accordance with the said Rules the names of the six persons so elected.
(4) If a panel is duly elected in accordance with the foregoing provisions of this section, the first banking Directors shall be appointed from amongst the persons so elected to such panel.
(5) If the said representatives of the Associated Banks who attend at the appointed time and place fail to elect in accordance with this section the said panel of six persons or if no representatives of the Associated Banks attend at the appointed time and place, it shall be lawful for the Minister to appoint such three eligible persons as he shall think proper to be the first banking Directors, but subject to the restrictions that, if and so far as eligible and suitable persons willing to act can be found amongst the directors of the several Associated Banks, no person who is not a director of an Associated Bank shall be appointed by the Minister under this sub-section, and in any event no person who is in the permanent service of the State shall be so appointed.