(1) A nominated Director shall hold office during the pleasure of the Central Government.

(2} An elected Director shall hold office for four years : Provided that one out of the two directors elected to represent the share-holders referred to in each of the clauses (c), (,d) and (e) of section to shall retire at the end of two years after the first election; the directors so to retire shall be determined by lot : Provided further that an elected Director shall be required to continue in his office until his successor has been elected : Provided further that a Director shall be eligible for re-election for not more than full consultative terms after the rotation of elected Directors has begun.

(3) A casual vacancy in the office of an elected Director shall be filled by election and a Director so elected shall hold office for the unexpired portion of the term of his predecessor. Provided that no casual vacancy occurring within3[Six months]of the date of expiry of the normal term of office of an elected Director need be filled under this sub-section.

(4) Directors other than the Managing Director and not being servants of the Government, shall be paid such fees for attending meetings of the Board and if they are members thereof, of the Executive Committee, as may be prescribed.

(5) No act or proceeding of the Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Board.



3. Substituted for "three months ", vide THE INDUSTRIAL FINANCE CORPORATION (AMENDMENT ACT, 1982) (2 Of 1982), Dt. 8th March, 1982 Published in It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. [Gaz, of India Ex. Pt. II Sec.1 9-3-1982 p.7