Section 18: Prohibition of Interlocking Directorship. etc.

(1) No bank shall-
(a) employ or continue the employment of any person who is, or at any time has been, adjudged bankrupt or has suspended payment to or has compounded with his creditors or who is or has been convicted by a Court for an offence involving fraud, or dishonesty or professional misconduct; or
(b) be managed by a management agent except as may be approved by the Bank.
(2) Except with the approval of the Bank, no bank shall have, as a director, any person who is a director of-
(a) any other bank; or
(b) any company or entity which has significant influence on the bank:
Provided that in the case of a financial holding company, the aggregate number of directors from the subsidiaries and associates shall not exceed 30% of the members of the board of directors of the financial holding company, and the number of directors of the financial holding company in the board of a subsidiary or associate shall not exceed 30% of the members of the board of such subsidiary or associate.
(3) For purposes of subsection (2) (b), "significant influence" means direct or indirect ownership of 5% or more of the voting rights in the bank or controlling influence in the decision-making process of the bank.
(4) A bank shall not be managed by a person who is-
(a) a director of any other company not being a subsidiary of the bank; or
(b) engaged in any other business or vocation whether remunerated or not except such personal or charitable causes as may be determined by the Bank and which do not conflict with or detract from their full-time duties.
(5) Every director of a bank shall sign and adhere to a code of conduct in such form or manner as the Bank may prescribe.
(6) The chief executive of a bank shall cause all the officers of the bank to sign and adhere to a code of conduct as may be approved by the board of directors.