Chapter II CONSTITUTION OF THE BOARD

Creation and incorporation of the Board. The duty of carrying out the provisions of this Act shall, subject to the restrictions, conditions and limitations therein contained be vested in a Board to be called the Karnataka Urban Water Supply and Drainage Board and such Board shall be a body corporate and have perpetual succession and a common seal and shall by the said name sue and be sued.

(1) The Board shall consist of,- (a) a Chairman ; (b) a Managing Director; (c) four directors of whom one shall be the Director of Municipal Administration and three others to represent respectively the Government Secretariat Department dealing in, - (i) Finance; (ii) Housing and Urban Development; (iii) Public Works; (d) four directors to represent the local authorities, one from each revenue division; (e) eight other directors of whom four shall be persons possessing wide experience in the field of public health engineering with reference to water supply or drainage or disposal of industrial wastes, who are not employed by the Government or a local authority or a corporation owned or controlled by the Government. (2) The Chairman and the Managing Director shall posses the prescribed qualifications. They and the other directors shall be appointed by the Government.

The appointment of the Chairman, the Managing Director and the official and non-official directors shall be notified in the official Gazette.

Term of office and conditions of service of the directors. (1) All directors including the Chairman and the Managing Director shall hold office during the pleasure of the Government. (2) Any director may, by writing addressed to the Government, resign his office and such resignation takes effect when accepted by Government.

(1) A person shall be disqualified for being appointed as, and for being, a director of the Board, if he,- (a) has been sentenced for any offence involving moral turpitude, such sentence not having been reversed; (b) is an undischarged insolvent; (c) is of unsound mind; (d) is an officer or servant of the Board; (e) has directly or indirectly, by himself or by any partner, employer or employee, any share or interest in any contract or employment with, by or on behalf of, the Board; (f) is a director or a secretary, manager or other officer of any incorporated company which has any share or interest in any contract or employment with, by or on behalf of the Board. (2) A person shall not be disqualified under clause (e) or clause (f) of sub-section (1) or be deemed to have any share or interest in any contract or employment within the meaning of those clauses, by reasons only of his or the incorporated company of which he is a director, secretary, manager, or other officer, having a share or interest in,- (i) any sale, purchase, lease or exchange of immovable property or any agreement for the same; (ii) any agreement for the loan of money or any security for the payment of money only; (iii) any newspaper in which any advertisement relating to the affairs of the Board is inserted; (iv) the occasional sale to the Board, if the sum paid as consideration does not exceed Rs. 2,000 in any one year, of any article in which he or the incorporated company regularly trades. (3) A person shall not also be disqualified under clause (e) or clause (f) of sub-section (1) or be deemed to have any share or interest in any incorporated company which has any share or interest in any contract or employment with, by, or on behalf of the Board, by reason only of his being a share holder of such company: Provided that such person discloses to the Government the nature and extent of the shares held by him. Explanation.- For the purposes of clause (d) of sub-section (1) the Chairman or the Managing Director or any director shall not be deemed to be an officer or servant of the Board.

(1) If at any time it appears to the Government that the Chairman has shown himself to be unsuitable for his office, or has been guilty of any misconduct or neglect which renders his removal expedient, it shall by notification remove him from office after giving him a reasonable opportunity of showing cause. (2) The Government may, by notification, remove any non-official director from office after giving him a reasonable opportunity of showing cause,- (a) if he has, without the permission of the Board, been absent from the meetings of the Board for a period of three consecutive months reckoned from the date of the commencement of his term of office, or of the last meeting which he attended, as the case may be, or within the said period, less than three meetings have been held, been absent from three consecutive meetings held after the said date; (b) if he, being a legal practitioner, acts or appears on behalf of any person other than the Board in any civil, criminal or other legal proceedings in which the Board is interested, either as a party or otherwise; or (c) if he, in the opinion of the Government, is unsuitable or has become incapable of acting as a director or has so abused his position as a director as to render his continuance as such director detrimental to public interest. (3) A non-official director removed under any of the provisions of clauses (a) and (b) of sub-section (2) shall unless otherwise directed by the Government be disqualified for appointment as a director for a period of three years from the date of his removal. (4) A non-official director removed under clause (c) of sub-section (2) shall not be eligible for reappointment until he is declared by an order of the Government to be no longer ineligible.