State Financial Corporations Act, 1951
27. Power to impose conditions for accommodation
(1) In entering into any arrangement under section 25 with an industrial concern, the Financial Corporation may impose such conditions as it may think necessary or expedient for protecting the interests of the Financial Corporation and securing that the accommodation granted by it is put to the best use by the industrial concern.
(2) Where any arrangement entered into by the Financial Corporation with an industrial concern provides for the appointment by the Financial Corporation of one or more Directors of such industrial concern, such provision and any appointment of Directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, Articles of Association or any other instrument relating to the industrial concern, and any provision regarding share qualification, age limit, number of Directorships, removal of office of Directors and such like conditions contained in any such law or instrument aforesaid shall not apply to any Director appointed by the Financial Corporation in pursuance of the arrangement as aforesaid.
(3) Any Director appointed in pursuance of sub-section (2) shall-
(a) hold office during the pleasure of the Financial Corporation and may be removed or substituted by any person by order in writing by the Financial Corporation;
(b) not incur any obligation or liability by reason only of his being a Director or for anything done or omitted to be done in good faith in the discharge of his duties as a Director or anything in relation thereto;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of Directors liable to such retirement.