Qualifications of the Directors
The directors regulate corporate affairs of the public limited company. They are responsible for formulating plans, policies, and strategies. The qualifications of a director are not described in the Memorandum of Association. The qualifications are described in the Articles of Association. Though there are no specific qualifications of the directors described in Companies Act. But the directors should have following qualifications:
- Directors have to buy a specific amount of share.
- Directors have to be neutral.
- Directors should have the eligibility to make an agreement.
- Directors must be wealthy.
- Directors must have the normal mentality as a director.
- Directors should be eligible to pay the debt.
- Directors should possess a variety of knowledge and experiences while being a professional with an ethical mind.
- Director should fully understand his obligations and practices with a commitment to creating long-term values for the business and the shareholders.
- Director should have enough time to perform his duties effectively.
- Director should be able to assess himself and is ready to notify the Board of Directors upon change or if there is anything that prevents him from performing his job effectively.
- Directors must not be announced as a bankrupt by the Court.
If an eligible person has the above-discussed qualities, he/she can be elected as a director of the company. Except these qualifications directorship will not he provided anyone.