Section 30D
Appointment of Chairman and new Board members
(1)
Where the Minister has assumed control of the business of a finance company under section 30 and has made determination that the value to be realised from the finance company's assets is less than the finance company's liabilities, he may -
(a)
serve notice upon any person who at the time of such determination was serving as a director thereof without any right to compensation, whereupon he shall cease to be a director of the finance company and any agreement between him and the finance company which provides for compensation in respect of services of directors of the finance company shall be unenforceable in so far as it relates to such compensation: and
(b)
direct that either all former directors of the finance company or. as the case may be, such former director or directors of the finance company as may be specified in the direction, shall ceased to be entitled to compensation, whether by way of pension or otherwise, in respect of their service as directors, whereupon any agreement between any former director and the finance company which provides for any such compensation shall be enforceable in so far as it relates to such compensation.
(2)
In the event of the Minister serving notice upon a director of a finance company under subsection (l)(a), such person as the Minister may appoint shall by virtue of this section become Chairman and a director of a newly constituted Board of Directors of the finance company to be appointed by the Minister.
(3)
Under subsection (2), the Minister shall appoint to a new Board of Directors not less than three persons but not more than twenty persons,
Finance Companies
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and including at least two persons who. in the opinioil of the Minister, possess expertise in banking or finance.
(4)
The Minister in exercise of his control of a finance company under section 30 shall take such steps as necessary to appoint the Chairman and directors appointed pursuant to subsections (2). (3) and (4) as the
Chairman and directors of every subsidiary of the finance company: and for the purposes of this subsection, the Minister shall be entitled to exercise all voting rights pertaining to issued shares in any subsidiary of the finance company.
(5)
Subject to section 30E(2), no fee or reward, financial or otherwise shall be paid by the finance company to any director who is appointed under this section.
(6)
Notwithstanding his removal from ofice under subsection (1).
every former director shall remain liable for all his acts and omissions in respect of the period while he was a director.