Banking Regulation Act, 1949 — back to Table of Contents
Section 45L. Public examination of directors and auditors, etc., in respect of a banking company under schemes of arrangement
(1) Where an application for sanctioning a compromise or arrangement in respect of a banking company is made under section 391 of the Companies Act, 1956, or where such sanction has been given, and the High Court considers — whether on a report of the Reserve Bank or otherwise — that a promoter, director, or auditor should be publicly examined, it may direct that examination; section 45G applies, so far as possible, as it does to a banking company being wound up.
(2) Where a compromise or arrangement is sanctioned under section 391 of the Companies Act, 1956, section 543 of that Act and section 45H of this Act apply, so far as possible, as if the sanctioning order were a winding-up order.
(3) Where a scheme of reconstruction or amalgamation of a banking company has been sanctioned by the Central Government under section 45, and the Central Government considers that a promoter, director, or auditor should be publicly examined, it may apply to the High Court for that examination. If the examination shows (whether or not fraud was committed) that the person is unfit to be a director or auditor, the Central Government orders that the person may not, without its leave, be a director of or act as auditor for any company, for a period not exceeding five years.
(4) Where such a scheme has been sanctioned under section 45, section 543 of the Companies Act, 1956, and section 45H of this Act apply, so far as possible, as if the sanctioning order were a winding-up order, with references to the official liquidator’s application read as references to the Central Government’s application.
Note: Part IIIA was inserted by the Banking Companies (Amendment) Act, 1953. Sub-sections (3) and (4) were inserted by the Banking Companies (Second Amendment) Act, 1960.
