1[10. Prohibition of employment of managing agents and restrictions on certain forms of employment.—(1) No banking company—

2[Provided that nothing contained in this sub-clause shall apply to the payment by a banking company of—

3[(i) who is a director of any other company not being—

Provided that the prohibition in this sub-clause shall not apply in respect of any such director for a temporary period not exceeding three months or such further period not exceeding nine months as the Reserve Bank may allow; or]

5[Provided that the term of office of any such person may be renewed or extended by further periods not exceeding five years on each occasion subject to the condition that such renewal or extension shall not be sanctioned earlier than two years from the date on which it is to come into force:

Provided also that where the term of office of such person is for an indefinite period, such term, unless it otherwise comes to an end earlier, shall come to an end immediately on the expiry of five years from the date of his appointment or on the expiry of three months from the date of commencement of section 8 of the Banking Laws (Miscellaneous Provisions) Act, 1963 (55 of 1963), whichever is later:]

Provided further that nothing in this clause shall apply to a director, other than the managing director, of a banking company by reason only of his being such director.

Explanation.—For the purpose of sub-clause (iii) of clause (b), the expression "remuneration ", in relation to person employed or continued in employment, shall include salary, fees and perquisites but shall not include any allowances or other amounts paid to him for the purpose of reimbursing him in respect of the expenses actually incurred by him in the performance of his duties.

(2) In forming its opinion under sub-clause (iii) of clause (b) sub-section (1), the Reserve Bank may have regard among other matters to the following:—

6[7* * * * *

(6) Any decision or order of the Reserve Bank made under this section shall be final for all purposes.]]1. Subs. by Act 95 of 1956, s. 2, for section 10 (w.e.f. 14-1-1957). 2. Subs. by Act 33 of 1959, s. 6, for the proviso (w.e.f. 1-10-1959). 3. Subs. by s. 6, ibid., for sub-clause (i) (w.e.f. 1-10-1959). 4. Subs. by Act 55 of 1963, s. 8, for "who has a contract with the company for its management " (w.e.f. 1-2-1964). 5. Subs. by s. 8, ibid., for the first proviso (w.e.f. 1-2-1964). 6. Subs. by Act 33 of 1959, s. 6, for sub-section (3) (w.e.f. 1-10-1959). 7. Omitted by Act 55 of 1963, s. 8 (w.e.f. 1-2-1964).