3. Section 10 of the principal Act is hereby repealed and the following new section substituted therefor: -
| 10.
| | (1) The board of directors shall be constituted in accordance with the provisions of this section. | | |
| | (2) So long as there is outstanding any loan made by the Government to the Corporation pursuant to the provisions of this Act, the Minister in charge of the subject of Finance, acting in consultation with the Minister in charge of the subject of Industries, shall be entitled from time to time to appoint one person as a director (hereinafter called the" Government director") of the Corporation, to remove such person from office and, on a vacancy being caused in such office whether by resignation, death, removal or otherwise, to appoint a director to fill the vacancy. The Government director shall not be liable to retire by rotation or be removed from office except by the Minister in charge of the subject of Finance as aforesaid and shall not be bound to hold any qualification shares. Subject as aforesaid the Government director shall be entitled to the same rights and privileges and be subject to the same obligations as any other director of the Corporation. | | |
| | (3) The Minister In charge of the subject of Industries shall be entitled from time to time to appoint one person as a director (hereinafter called the" appointed director") of the Corporation to remove such person from office and, on a vacancy being caused in such office whether by resignation, death, removal or otherwise, to appoint a director to fill the vacancy. The appointed director shall not be liable to retire by rotation or be removed from office except by such Minister and shall not be bound to hold any qualification shares, Subject as aforesaid the appointed director shall be entitled to have the same rights and privileges and be subject to the same obligations as any other director of the Corporation. | | |
| | (4) The following shall be ex officio directors of the Corporation without the right to vote: -
| | | (a) The holder for the time being of the office of Director of the Ceylon Institute of Scientific and Industrial Research. |
| (b) The holder for the time being of the office of General Manager of the Corporation. |
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| | (5) There shall be not less than six and not more than eight other directors (hereinafter referred to as" shareholder-directors"). The Minister in charge of the subject of Finance shall appoint the initial shareholder-directors. At the end of each financial year of the Corporation after the Corporation is entitled to transact business, one of the initial shareholder-directors so appointed shall retire. The director who shall so retire shall be determined by the drawing of lots. Any successor to an initial shareholder-director who retires pursuant to this subsection or whose office becomes vacant for any other cause, and any new shareholder-director shall be elected and hold office in accordance with the regulations of the Corporation made under section 11. An initial shareholder-director shall be eligible to be elected to succeed himself if qualified to be elected under subsection(6). A majority of the shareholder-directors shall at all times be citizens of Sri Lanka. | | |
| | (6) A person shall be qualified to be elected and hold office as a shareholder-director if and so long as he-
| | | (a) has, or is an officer, director or partner of a company or partnership which has, shares of the par value of not less than five thousand rupees in the capital of the Corporation, |
| (b) is not a Member of Parliament or a member of a local authority, |
| (c) is not a paid employee of the Corporation. |
| (d) is not a person who, having been declared an insolvent or a bankrupt under any law in force in Sri Lanka or in any other country, is an undischarged insolvent or bankrupt, |
| (e) is not found or declared to be of unsound mind under any law in force in Sri Lanka or in any other country; and |
| (f) is not serving a sentence of imprisonment imposed by any court in Sri Lanka or in any other country: |
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| | (7) The members of the board of directors shall elect one of the shareholder-directors to be the chairman of the board of directors. such election shall not take effect unless approved by the Minister in charge of the subject of Planning and Economic Affairs.'. | | |
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Sri Lanka Consolidated Acts