law: State Financial Corporations Act, 1951 
  10. Board of Directors 
  The Board of Directors shall consist of the following, namely:-
  (a) four Directors nominated by the State Government of whom one
  
  Director shall be a person who has special knowledge of or experience in small
  
  scale industries:
  PROVIDED  that in the case of a Joint Financial
  
  Corporation, the number of Directors shall be such as the State Governments of
  
  the participating States may, by agreement among themselves, think fit to
  
  nominate, each participating State Government nominating not more than two
  
  Directors:
  PROVIDED FURTHER  that in the case of a Joint Financial
  
  Corporation, the Director, who shall have special knowledge of, or experience
  
  in, small-scale industries, shall be nominated by that participating State
  
  which, according to the terms of agreement between the participating States, is
  
  entitled to make such nomination;
  (b) one Director nominated by the Reserve Bank;
  (c) two Directors nominated by the Development Bank;
  (d) three Directors elected in the prescribed manner by the
  
  parties referred to in clause (c) of sub-section (3) of section 4, one of whom
  
  shall be elected to represent scheduled banks, another to represent
  
  co-operative banks and the third to represent the remaining 11[financial
  
  institutions and other institutions];
  (e) one Director elected in the prescribed manner from among
  
  themselves by the parties referred to in clause (d) sub-section (3) of section
  
  4 who are shareholders of the Financial Corporation;
  (f) a Managing Director appointed by the State Government in
  
  consultation with and after obtaining the advice of the Development Bank and,
  
  except in the case of first appointment, also with the Board:
  PROVIDED  that on the first constitution of the Board
  
  the Directors referred to in clauses (d) and (e) shall be nominated by the
  
  State Government and the Directors so nominated shall, for the purpose of this
  
  Act, be deemed to be elected Directors:
  PROVIDED FURTHER  that all Directors of the Board first
  
  constituted other than the Managing Director shall retire at the end of the
  
  first year.