Section 2: Powers of and appointments to boards of corporations affected

(1)
The board of any corporation affected shall be responsible for the determination of the overall policy of the corporation, and in particular with regard to the financial, economic and operational programmes of the corporation affected, and for ensuring the implementation of such policy.
(2)
The chief executive of a corporation affected, by whatever name called or known, shall be responsible for the implementation of the policy decisions of the board and for the day-to-day running of the corporation affected; and if by virtue of his office he is a member of the board, he shall continue to be a member thereof but without vote.
(3)
The Minister charged with responsibility for a corporation affected (in this Act referred to as "the appropriate Minister") may give to the board of a corporation affected, directives of a general or a special nature with regard to the exercise by the corporation affected of its functions; and as the case may require, it shall be the duty of the chairman of the board and the chief executive, to comply with the directives unless matters of policy are in dispute and subsection (4) of this section applies.
(4)
In the application of subsection (3) of this section, where the appropriate Minister intends to initiate a policy in so far as it relates to a corporation affected, he must consult with the chairman of the board of that corporation, and in the event of disagreement, the policy and any directive issued shall stand suspended, so however that if any part in dispute is severable from any other aspects of policy not in dispute, the policy or the directive issued shall be suspended only in respect of the part in dispute; and thereafter the policy, or the part in dispute, as the case may be, so suspended shall, after reference to it by the appropriate Minister, be affirmed, modified, or rejected by the President as he may think fit and so direct.
(5)
Appointments of members to the board of a corporation affected shall be made by the appropriate Minister only after first satisfying the President in respect thereof that the persons concerned are persons of integrity and of good standing in the community from which they are to be drawn. In addition, the President must be satisfied that such persons have the necessary ability, experience or specialised knowledge of the working of the particular corporation in respect of which appointments as aforesaid are contemplated, so as to discharge their functions of office in a manner satisfactory to the appropriate Minister.
(6)
Persons, when appointed pursuant to subsection (5) of this section, shall thereafter be removable only on the grounds of misbehaviour, or inability from any cause to discharge their functions as aforesaid.