Ineligible Criteria

Question 1

Ineligible criteria

Answer 1

Ineligibility to be a Director

The following individuals are ineligible to be appointed as directors of a company:

1. Minors
2. Individuals of unsound mind
3. Those with pending insolvency applications
4. Undischarged insolvents
5. Individuals convicted of offenses involving moral turpitude
6. Those debarred from holding such office under the Companies Act
7. Individuals lacking fiduciary behavior, as declared by a court, within the preceding 5 years
8. Those without a National Tax Number (unless exempted by the Commission)
9. Non-members, except for:
   
   • Representatives of non-natural person members
   • Whole-time directors who are company employees
   • Chief executives
   • Representatives of creditors or special interests through contractual arrangements

For listed companies only, the following individuals are also ineligible:

1. Those declared by a court as defaulters in repaying loans to financial institutions
2. Individuals engaged in brokerage or is a spouse of such person or sponsors, directors, or officers of corporate brokerage houses.

Ineligibility of Bankrupt

An undischarged insolvent (bankrupt) is ineligible to act as:

1. Chief Executive
2. Director of a company

If an undischarged insolvent acts in either of these capacities, they shall be liable to:

1. Imprisonment for up to 2 years
2. A fine
3. Both imprisonment and fine