The Chairman and the other members of the Board shall hold office for such period, and shall be eligible for re-appointment under such conditions, as may be prescribed.

Members not to hold interest in certain concerns Members not to hold interest in certain concerns.--

1. (1) A member of the Board shall, prior to his appointment, give to the Government intimation of, and shall, before taking charge of his office, divest himself of, any interest which he may have for his own benefit whether in his own name or otherwise, in any firm or company carrying on the business of supplying electricity or any fuel plant, equipment, apparatus or fittings for the generation, transmission, distribution or use of electricity or any interest in the managing agency or shares or securities of any such company ; and it shall not be lawful for a member of the Board, so long as he holds office, to acquire or purchase any such interest in any such firm or company and if he, under any will or by succession or gift, becomes entitled for his own benefit to any such interest, he shall sell the same within three months after becoming so entitled thereto ; and he shall also, within three months, sever any connection he may have and cease to have any interest, direct or indirect, in any such concern.
2. (2) Nothing contained in sub-section (1) shall prevent a member from acquiring or holding any share or interest in any firm or company other than a firm or company mentioned in sub-section (1) : Provided that if the Board has entered into, or is about to enter into any contract or agreement with any such Firm or Company in which a member holds any share or interest he shall disclose the fact and nature of such interest and he shall not be entitled to vote on any decision of the Board relating to such contract or agreement.
3. (3) A disclosure referred to in the proviso to sub-section (2) shall forthwith be recorded in the minutes of the Board and communicated to the Government and the Government may then give such directions as it may deem proper.