Section 153: Ineligibility of certain persons to become director

153. Ineligibility of certain persons to become director.—A person shall not be eligible for appointment as a director of a company, if he — (a) is a minor; (b) is of unsound mind; (c) has applied to be adjudicated as an insolvent and his application is pending; (d) is an undischarged insolvent; (e) has been convicted by a court of law for an offence involving moral turpitude; (f) has been debarred from holding such office under any provision of this Act; (g) is lacking fiduciary behaviour and a declaration to this effect has been made by the Court under section 212 at any time during the preceding five years; (h) does not hold National Tax Number as per the provisions of Income Tax Ordinance, 2001 (XLIX of 2001): Provided that the Commission may grant exemption from the requirement of this clause as may be notified; (i) is not a member: Provided that clause (i) shall not apply in the case of,— (i) a person representing a member which is not a natural person; (ii) a whole-time director who is an employee of the company; (iii) a chief executive; or (iv) a person representing a creditor or other special interests by virtue of contractual arrangements; (j) has been declared by a court of competent jurisdiction as defaulter in repayment of loan to a financial institution; (k) is engaged in the business of brokerage, or is a spouse of such person or is a sponsor, director or officer of a corporate brokerage house: Provided that clauses (j) and (k) shall be applicable only in case of listed companies.

Effective date: 2017-05-30

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