A person who is an undischarged insolvent or has at any time been adjudged insolvent. ,A person who suspends or has at any time suspended, payment to his creditors or makes or has made a composition with them.,A person who is or has been convicted by a court of an offence involving moral turpitude. The first Part of Schedule XIII gives the list of statutes and provides that any person convicted for
violating them and sentenced to imprisonment or fine up to Rs 1000 shall not be appointed without the approval of the Central Government.
An independent director means a director other than a managing director or a whole-time director or a nominee director who does not have any material or pecuniary relationship with the company/ directors..
A Director of a Company must be above the age of 21 and must have a Director Identification Number. The person can be an Indian National or a Foreign National. The Director of a Company has to be a natural person..
The articles may impose a share qualification, but this is unusual in modern companies' articles. If a company has such a provision in its articles, the shares must be acquired within two months of appointment.
Only an Individual (living person) can be appointed as a Director in a Company. A body corporate or business entity cannot be appointed as a Director in a Company. A company can have a maximum of fifteen Directors – it can be increased further by passing a special resolution.Minimum Number of Director in Company are as follows:
- Private Limited Company – Minimum two Directors in case of Private Limited Company
- Limited Company – Minimum three Directors in case of Limited Company.
- One Person Company – Minimum one Director in case of One Person Company.