DIRECTORS OF A COMPANY. — SPCC STD 12 Commerce — Question

1. Qulification of Directors : Following qualifications for independent directors are prescribed in the Companies Act-2013.
(1) Appropriate skill, experience and imagination.
(2) Knowledge of laws, Management and field of Finance.
(3) Knowledge of Administration and Reaserch Aptitudes.
(4) Skill of Corporate Governance.
(5) Knowledge of technical operations related to company’s business.

2. Disqualification of Directors : Following provisions as disqualification prescribed as in the company law for appointment of director.
(1) Person is if unsound mind.
(2) Person is insolvent.
(3) Person has been convicted by a court of law and sentenced for at least 6 months.
(4) Person who has been convicted for above offence and has been sentenced for more than seven years is disqualified for life time.
(5) An order has been passed by a court disqualifying him for appointment as a director 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 fradulent activities with relative parties in the last 5 years.
(8) Appointed director who fails to 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 not be appointed as director for five years from the date of his failure.
A private company may amend above conditions in Articles of Association by chainging the terms from 6 months to 30 days.