(1)The Chairman of the Board shall be one of the Directors (not being the Managing Director ) nominated in this behalf by the Central Government after considering, except in the case of the nomination of the first Chairman the recommendation of the Board : Provided that the nomination of the Chairman for any period (other than the first period) shall be made only after the vacancies in the office of Directors occurring by efflux of time in that period have been filled by nomination or election, as the case may be.

(2) The Chairman shall hold office for two years or until his successor is nominated:: Provided that a Chairman shall, so long as he remains a Director, be eligible for re nomination as Chairman.