MANAGEMENT OF THE NATIONAL HOUSING BANKCentral

Section 11 of The National Housing Bank Act, 1987

Meetings of Board.

(1)The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings, as may be prescribed.
(2)The Chairman, or, if for any reason he is unable to attend a meeting of the Board, the Managing Director, or, in the event of both the Chairman and the Managing Director being unable to attend a meeting, any other director nominated by the Chairman in this behalf and in the absence of such nomination, any director elected by the directors present from among themselves at the meeting, shall preside at the meeting.
(3)All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.

Summary

Section 11 of the National Housing Bank Act sets the rules for how the Board of Directors conducts its meetings and makes decisions.
It states that the Board will meet at prescribed times and places.
The Chairman presides over meetings, or the Managing Director if the Chairman is absent.
If both are absent, a director nominated by the Chairman leads, and if no one is nominated, the present directors elect someone to lead.
Decisions are made by a majority vote of the directors who are present and voting.
The person presiding gets a second or casting vote if there is a tie.

Practical examples

1On March 12, 2027, the Board holds a meeting in New Delhi. The Chairman is sick and cannot attend. As per the rules, Managing Director Priya Sharma takes over and presides over the meeting.

2During a board meeting to decide on a new policy, four directors vote in favour and four vote against. The Chairman, Rahul Verma, uses his casting vote to break the tie and pass the policy.

FAQ

1. Under Section 11 of The National Housing Bank Act, 1987, who leads the board meeting if the Chairman is not available?

According to Section 11 of The National Housing Bank Act, 1987, the Managing Director presides if the Chairman is unable to attend. If both are absent, a nominated director or an elected director will preside.

2. How are decisions made at board meetings according to Section 11 of the housing finance law?

Section 11 of the housing finance law states that all questions are decided by a majority of votes from the directors present and voting.

3. What happens if there is a tie in voting under Section 11 of the National Housing Bank Act?

Section 11 of the National Housing Bank Act dictates that the Chairman, or the person presiding in his absence, gets a second or casting vote to resolve a tie.

Test yourself

1.According to Section 11 of The National Housing Bank Act, 1987, what is required to pass a decision during a board meeting?

2.Under Section 11 of the housing finance law, who has the authority to cast a second vote if a board decision ends in a tie?

3.Based on Section 11 of The National Housing Bank Act, 1987, what happens if both the Chairman and Managing Director are absent, and the Chairman did not nominate anyone to preside?

4.Which document or authority dictates the times and places for board meetings under Section 11 of the National Housing Bank Act?

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