Whether a bankrupt can be appointed as a director?
Sec 125(1) of the Companies Act states that an undischarged bankrupt may not be a director of a corporation or take part in the management of the corporation directly or indirectly.
He shall be guilty of an offence if he contravenes sec 125(1)
He must obtain the leave of the court to be a director or involve in the management of a company.
Note that this section applies if the person is adjudicated bankrupt in a foreign court.
Note that the act never disqualify the undischarged bankrupt as not being able to be a director but only penalised him via an offence.
Note the case of [Name] v [Name] – a person who was disqualified under the Malaysian equivalent of sec 147 had no capacity to affirm the affidavit on behalf of the company.
