The Companies and Allied Matters Act requires limited liability companies to have at least two directors.

Required:

Explain any TWO qualifications that a person must possess to be eligible for appointment as a director of a company. (5 Marks)

  • Legal capacity: The person must not be an infant (below 18 years), and must be mentally stable, i.e., not a lunatic or a person of unsound mind.
  • Financial solvency: The person must not be a bankrupt or involved in any arrangement with creditors, ensuring they are financially responsible and not reckless.
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