(3) A member who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal entered into or proposed to be entered into by or on behalf of the State Bank, shall, at the earliest possible opportunity, disclose the nature of his interest to the Local Board and shall not be present at any meeting of the Local Board when any such contract, loan, arrangement or proposal is discussed unless his presence is required by the other members for the purpose of eliciting information, and no member so required to be present shall vote on any such contract, loan, arrangement or proposal: Provided that nothing contained in this sub- section shall apply to such member by reason only of his being--
a shareholder (other than a director) holding not more than two per cent. of the paid- up capital in any public company as defined in 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 or to which the State Bank has entered into or
made or proposes to enter into or make, a contract, loan, arrangement or proposal, or
a director ex officio of the State Bank or a director of a subsidiary bank.