Chapter IV CONDUCT AND BUSINESS OF THE BOARD

(1) The Board shall meet at such times and places and shall, subject to the provisions of sub-sections (2) and (3) observes such rules of procedure in regard to transaction of business at its meetings including the quorum at meetings as may be prescribed by regulations: Provided that the Board shall meet at least once in three months. (2) The Chairman or in his absence, the Managing Director shall preside at a meeting of the Board. (3) All questions at any meetings of the Board shall be decided by a majority of the votes of the directors present and voting and in the case of an equality of votes, the Chairman, or in his absence the Managing Director presiding, shall have and exercise a second or casting vote.

(1) The Board may associate with itself in such manner and for such purposes as may be determined by regulations, any person whose assistance or advice it may desire in performing any of its functions under this Act: Provided that the number of persons so associated shall not be more than four. (2) The Board may invite any person to offer his views on any subject discussed at any meeting of the Board. (3) A person associated with the Board under sub-section (1) or invited for a discussion under sub-section (2) for any purpose shall have the right to take part in the discussions of the Board relevant to that purpose, but shall not have the right to vote at a meeting of the Board.

(1) The Board may from time to time, appoint committees consisting of such number of persons as it may think fit for the purpose of discharging such duties or performing such functions and on such terms and conditions as may be prescribed by regulations. (2) The Chairman, or such other person as he may nominate in this behalf shall be the president of the committee and the committee shall observe such rules of procedure in regard to transaction of business at its meetings as may be prescribed by regulations. (3) All proceedings of the committee shall be subject to confirmation by the Board.

No act done or proceedings taken under this Act by the Board or any committee shall be invalidated merely on the ground,- (a) of any vacancy or defect in the constitution of the Board or the committee; or (b) of any defect or irregularity in the appointment of a person acting as a director thereof; or (c) of any defect or irregularity in such act or proceeding not affecting the merits of the case. (e) such other functions as may be prescribed.

(2) No scheme estimated to cost more than ten lakhs of rupees shall be carried out by the Board except with the previous approval of the State Government.