Section 50: Disqualifications of Directors

The following persons shall not be eligible to become a director of the insurance company:

(a) One who has not attained the age of 25 years,

(b) One who is unable to work as a director due to physical or mental illness,

(c) One has been declared bankrupt, as per prevailing laws,

(d) One has been blocked as per prevailing laws, and a period of at least three years has not lapsed after the removal of one’s name from the blocklist,

(e) An incumbent/serving director or an employee of any corporate body carrying out transactions of insurance or banking or financial transactions or any institution collecting any type of deposits or incumbent (existing) director with substantial shareholding or carrying out transactions related to insurance,

(f) An incumbent auditor or an advisor of the concerned insurance company or a person, firm or company who/which is a partner in any kind of contract with the concerned insurance company or has personal interests

(g) Who has acquired the membership in the Stock exchange to act as a securities broker or a merchant banker,

(h) Incumbent Director of another insurance company,

(i) A person who has not subscribed to a minimum number of shares required to subscribe to be eligible for appointment as a director pursuant to the Articles of Association of the insurance company,

(j) A person who has not subscribed to the qualification shares required to hold the position of director,

(k) A person holding any constitutional post or incumbent employee of the Government of Nepal, or a corporate body having ownership of the Government of Nepal, or the Nepal Insurance Authority or of any insurance company, bank or  financial institution,

Provided that nothing in this clause shall prevent from nominating a director in a different c category of insurance company of which shares has been purchased by the Government of Nepal or an institution having under the ownership of the Government of Nepal or insurance company,

(l) Who, having a liability to pay taxes pursuant to the laws in force, has failed to pay such taxes,

(m) If one has not completed a period of five years after serving out the sentence upon being convicted of an offence involving theft, cheating, forgery, fraud, corruption, any offence involving moral turpitude or offence related to insurance or banking or money laundering from a court of Nepal or that of a foreign country,

(n) If action had been taken against a person by a regulatory agency as per the law for committing an act in c contravention of the law and if they have not completed a period of five years after being taken such action,

(o) If one has not served the full sentence or is yet to clear the dues of the fine imposed by a court of law or if one is in arrears to pay a government due,

(p) If one has not completed a period of three years after serving out the sentence provided by the Nepal Insurance Authority due to non-compliance with the directions of the Authority.