(1) A person shall be disqualified for being appointed as, and for being, a director of the Board, if he,-
(a) has been sentenced for any offence involving moral turpitude, such sentence not having been reversed;
(b) is an undischarged insolvent;
(c) is of unsound mind;
(d) is an officer or servant of the Board;
(e) has directly or indirectly, by himself or by any partner, employer or employee, any share or interest in any contract or employment with, by or on behalf of, the Board;
(f) is a director or a secretary, manager or other officer of any incorporated company which has any share or interest in any contract or employment with, by or on behalf of the Board.
(2) A person shall not be disqualified under clause (e) or clause (f) of sub-section (1) or be deemed to have any share or interest in any contract or employment within the meaning of those clauses, by reasons only of his or the incorporated company of which he is a director, secretary, manager, or other officer, having a share or interest in,-
(i) any sale, purchase, lease or exchange of immovable property or any agreement for the same;
(ii) any agreement for the loan of money or any security for the payment of money only;
(iii) any newspaper in which any advertisement relating to the affairs of the Board is inserted;
(iv) the occasional sale to the Board, if the sum paid as consideration does not exceed two thousand rupees in any one year, of any article in which he or the incorporated company regularly trades.
(3) A person shall not also be disqualified under clause (e) or clause (f) of subsection (1) or be deemed to have any share or interest in any incorporated company which has any share or interest in any contract or employment with, by, or on behalf of the Board, by reason only of his being a share holder of such company:
Provided that such person discloses to the Government the nature and extent of the shares held by him.
Explanation.- For the purposes of clause (d) of sub-section (1) the Chairman or the Managing Director or any director shall not be deemed to be an officer or servant of the Board.