146. Restrictions on appointment or advertisement of director

Question 1

146. Restrictions on appointment or advertisement of director

Answer 1

General overview
[146.01] Section 146 provides for the procedural requirements that must be fulfiled before a person may be named as a director or proposed director of a company. Basically, he needs to file a consent to act as a director, a statement in the prescribed form that he is not disqualified from acting as a director under the Act or debarred from acting as such under s 155B, and file a declaration that he will take up and pay for the qualification shares, if any, and the registration of such shares in his name. In the case of any reconstruction or merger or acquisition of the company, a declaration that he was a shareholder in that other corporation(s) and he will be entitled to receive and register in his name the qualification shares by virtue of the terms of the reconstruction agreement.

Question 2

Consent to act

Answer 2

[146.02] The failure to file the necessary consents does not mean that the appointment is invalid.