Disqualifications: I he Companies Act prescribes the following provisions as disqualification for appointment of a Director:
(1) Person is of unsound mind.
(2) Person is insolvent.
(3) Person has been convicted by a court of law and sentenced for at least 6 months.
(4) A Person who has been convicted for above offence and has been sentenced for more than seven years is disqualified for life.
(5) An order, disqualifying him for appointment as a director, has been passed by a court and the order is in force. (6) Person has failed to pay calls on shares of the company on his name or held jointly and even after six months have elapsed after the due date.
(7) Person convicted for fraudulent activities with relative parties in the last 5 years.
(8) Appointed director does not present annual accounts for three continuous financial years.
(9) A director who fails to pay interest, dividend declared and interest on debenture, for more than one year can't be appointed as director for five years from the date of the failure.
(10) A Private company may amend these conditions in Articles of Association by changing the terms from 6 month to 30 days.