State Financial Corporations Act, 1951
17. Managing Director
(1) The Managing Director shall-
(a) be a whole time officer of the Financial Corporation:
PROVIDED that the Board may, if in its opinion it is necessary in the public interest so to do, permit the Managing Director to undertake, at the request of the Central Government or the State Government or the Development Bank, or the Reserve Bank, such part-time honorary work as is not likely to interfere with his duties as Managing Director;
(b) perform such duties as the Board may, by regulations, entrust or delegate to him;
(c) hold office for such term not exceeding four years as the State Government may specify and be eligible for re-appointment;
(d) receive such salary and allowances and be subject to other terms and conditions of service as the Board, with the previous approval of the State Government, may determine:
PROVIDED that the first Managing Director shall receive such salary and allowances and be subject to other terms and conditions of service as the State Government may fix.
(2) The State Government may, after consulting the Board, remove the Managing Director from office:
PROVIDED that no Managing Director shall be so removed unless he has been given an opportunity of showing cause against his removal.