(1) A bank or financial institution shall have a board of directors consisting of at least five and at most seven directors.
(2) The appointment of the operator shall be made by the general meeting of the bank or financial institution subject to this Act and Rules. So, –
(A) The operator shall be appointed by the founder for the period until the first annual general meeting of the bank or financial institution.
(B) If any post of the Chairman becomes vacant before the Annual General Meeting, the Chairman may be appointed by the Board of Directors till the next Annual General Meeting.
(C) If any organization has taken shares, that organization may nominate the operator in proportion to the shares and in doing so, the same person shall not be allowed to nominate more than one bank or financial institution.
(D) Notwithstanding anything written in clause (c), a person who is an operator in a bank or financial institution
This provision will not be considered as an obstacle for the operator in the Infrastructure Development Bank.
(3) The Board of Directors shall appoint at least one independent director from among the persons having qualifications and experience as per Article 17 and shall give the information in the first general meeting to be held after such appointment. However, the founder, operator or shareholder of a bank or financial institution holding more than zero point one percent and his family will not be allowed to be an independent operator.
(4) Notwithstanding anything written in subsections (1) and (3), no more than one person from one family shall be allowed to be a manager in a bank or financial institution at a time.
(5) The Chairman of the Board of Directors shall be a person chosen by the Board from among its members by a majority. (6) When a company, organization, foreign bank or financial institution holding shares of a bank or financial institution appoints a director in proportion to its share, it may also appoint an alternate director in addition to the operator to work in his absence.