Central Bank Act, 1942
Panel for the appointment of banking Directors other than the first such Directors.
27.—(1) Not more than thirty nor less than ten days before the expiration by effluxion of time of the term of office of a banking Director and also as soon as conveniently may be after the office of a banking Director becomes vacant otherwise than by effluxion of time, the Board shall notify every Associated Bank in writing of such prospective or actual vacancy and shall in such, notification request such Associated Bank to cause one, and only one, representative to attend at a time and place (in this section referred to as the appointed time and place) appointed by the Board and stated in such notification to elect a panel of three persons from amongst whom such vacancy may be filled.
(2) Whenever two or three vacancies amongst the banking Directors occur at or about the same time, the Board may, if they think it convenient so to do, send to every Associated Bank one, and only one, notification under the foregoing sub-section of this section in respect of all such vacancies, and where the Board so send only one such notification they shall, in such notification, state that the representatives attending at the appointed time and place are required to elect, if there are two and only two such vacancies, a panel of five persons or, if there are three such vacancies, a panel of six persons from amongst whom such vacancies may be filled.
(3) The several representatives of the Associated Banks (not being more than one representative from each such Bank) who attend at the appointed 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 persons eligible and willing to act as banking Director and shall forthwith communicate to the Minister and to the Board the names of the persons so elected.
(4) The panel to be elected in pursuance of the next preceding sub-section of this section shall be, if there is only one vacancy to be filled, a panel of three persons or, if there are two and only two vacancies to be filled, a panel of five persons, or, if there are three vacancies to be filled, a panel of six persons.
(5) If a panel is duly elected in accordance with the foregoing provisions of this section, the said vacancy or vacancies (whether prospective or actual) shall be filled from amongst the persons so elected to such panel.
(6) 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 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 eligible person or persons as he shall think proper to fill the said vacancy or vacancies, but subject to the restrictions that, if an eligible and suitable person or 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.