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Disqualification of Managing Director
In accordance with the section 196(3) of the companies act 2013, a company shall not appoint (or continue the employment) of any person as managing director, whole-time director or manager of the company, if that person is falling under any of the conditions mentioned below.
That person is below 21years or has attained 70 years age;
A person who is of 70 years or more can still be appointed by passing of a special resolution.
That person has at any time suspended payment to his creditors or makes, or has at any time made, a composition with them; or
has at any time been convicted by a court of an offence and sentenced for a period of more than 6 months.
That person is an undischarged insolvent or has been adjudged as an insolvent.
Earlier similar provisions were prescribed under section 267 of the companies act 1956.