Business Ethics and Corporate Governance, Second Edition

QUALIFICATIONS AND DISQUALIFICATIONS OF DIRECTORS

To be appointed as a director of a company, public authorities prescribe some qualifications. ‘No corporate, association or firm can be appointed as director of a company.’ A director must (i) be an individual; (ii) be competent to enter into a contract; and (iii) hold a share qualification if so required by the Articles of Association. As there are qualifications for being a director, there are some disqualifications too.

The following persons are disqualified for appointment as director of a company: (i) A person of unsound mind; (ii) an undischarged insolvent or one whose petition for declaring himself so is pending in a Court; (iii) a person who has been convicted by a Court for any offence ...