law: The Regional Rural Banks Act, 1976
  14. Meetings of Board
  1.  The
  
  Board of directors of a Regional Rural Bank shall meet at such time and place
  
  and shall observe such rules of procedure in regard to the transaction of
  
  business at its meetings as may be prescribed.
  2.  The
  
  Chairman of the Regional Rural Bank shall preside over every meeting of the
  
  Board, and, in his absence, such director as the Chairman may generally, or in
  
  relation to any particular meeting, authorise in this behalf shall preside;
  
  and, in the absence of both the Chairman and the director so authorised, the
  
  directors present at the meeting shall elect one from among themselves to
  
  preside over the meeting.
  Explanation.- For the purposes of this
  
  sub-section, "absence" from a meeting means non-attendance for any
  
  reason whatsoever at the meeting, or any part of the meeting during which any
  
  business is transacted.
  1.  
  2.  
  3.  All
  
  questions at a meeting of the Board shall be decided by a majority of the votes
  
  of the directors present and voting; and, in case of equality of votes, the
  
  person presiding shall have a second or casting vote.
  4.    No
  
  director shall, as a director, take part in the discussion of, or vote on, any
  
  contract, loan, arrangement or proposal entered into or to be entered into, by
  
  or on behalf of the Regional Rural Bank, if he is, in any way, whether directly
  
  or indirectly, interested in the contract, loan, arrangement or proposal and,
  
  where a director is interested in any such matter, he shall, at the earliest
  
  possible opportunity, disclose to the Board the nature of his interest in such
  
  contract, loan, arrangement or proposal, and where he does so, his presence at
  
  the meeting shall not count for the purpose of forming any quorum at the time
  
  of any such discussion or vote, and if he does vote, his vote shall be void:
  Provided that nothing contained in this
  
  sub-section shall apply to such director by reason only of his being-
   
  
   i.  
  
    A
  
  shareholder (other than a director) holding not more than two per cent.of the
  
  paid-up capital in any public company within the meaning of the Companies Act,
  
  1956 (1 of 1956), or any corporation established by or under any law for the
  
  time being in force in India or any co-operative society, with which the
  
  Regional Rural Bank has entered into, or proposes to enter into, any contract,
  
  loan, arrangement or proposal; or
   
  
   ii.  
  
    A
  
  director of the Regional Rural Bank as such.