(1) A person shall be disqualified for being nominated or appointed as, and for being a Director of the Nigam,-
(a) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or
(b) if he is of unsound mind and stands so declared by a competent Court; or
(c) if he is or has been convicted of any offence which, in the opinion of the State Government, involves moral turpitude; or
(d) if he is removed or dismissed from the service of the Government or a Corporation owned or controlled by the Central Government or the State Government; or
(e) if he acts in any manner prejudicial to the interest of the Nigam or has any interest in any body, institution or organisation whose activities are prejudicial to the interest of the Nigam.
(2) If a Director of the Nigam becomes subject to any of the disqualifications mentioned in sub-section (1) he shall cease to be a Director of the Nigam with effect from the date of notification to this effect by the State Government.
[Explanation. - For the purpose of this Section "Director" shall include Chairman.]