MANAGEMENT OF THE NATIONAL HOUSING BANKCentral

Section 12 of The National Housing Bank Act, 1987

(1)The Board may constitute an Executive Committee consisting of such number of directors as may be prescribed.
(2)The Executive Committee shall discharge such functions as may be prescribed, or, as may be delegated to it, by the Board.
(3)The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit for such purposes, as it may decide and any committee so constituted shall discharge such functions as may be delegated to it by the Board.
(4)The Executive Committee or any other committees constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at its meetings, as may be prescribed.

Summary

Section 12 of the National Housing Bank Act allows the Board to create an Executive Committee and other specialized committees to help run the bank.
The Executive Committee is made up of a prescribed number of directors.
This Executive Committee performs functions that are either prescribed by regulations or delegated directly by the Board.
The Board can also create other committees for specific purposes.
These other committees can consist entirely of directors, entirely of non-directors, or a mix of both.
All committees must meet at prescribed times and places and follow prescribed rules of procedure.

Practical examples

1The Board realizes they need a specialized group to review loan applications every week. Under Section 12, they form an Executive Committee of three directors and delegate this specific task to them.

2To research new eco-friendly housing materials, the Board uses Section 12 to create an advisory committee comprising two board directors and three external environmental scientists.

FAQ

1. Under Section 12 of The National Housing Bank Act, 1987, who sits on the Executive Committee?

Section 12 of The National Housing Bank Act, 1987 states that the Executive Committee consists of a prescribed number of directors from the Board.

2. Can the Board include non-directors in committees according to Section 12 of the housing finance law?

Yes. While the Executive Committee is for directors, Section 12 of the housing finance law allows the Board to form other committees consisting wholly of other persons or a mix of directors and other persons.

3. What rules do these committees follow when they meet under Section 12 of the National Housing Bank Act?

According to Section 12 of the National Housing Bank Act, committees must meet at such times and places and observe such rules of procedure as may be prescribed.

Test yourself

Q1.According to Section 12 of The National Housing Bank Act, 1987, what kind of people can make up the "other committees" constituted by the Board?

Q2.Where does the Executive Committee get its functions from under Section 12 of the housing finance law?

Q3.Who has the authority to constitute an Executive Committee under Section 12 of the National Housing Bank Act?

Q4.Based on Section 12 of The National Housing Bank Act, 1987, how are the meeting times for the Executive Committee determined?

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