179.
| (1) A person shall not be capable of being appointed director of a company by the articles and shall not be named as a director or proposed director of a company in a prospectus issued by or on behalf of the company, or as proposed director of an intended company in a prospectus issued in relation to that intended company, or in a statement in lieu of prospectus delivered to the Registrar by or on behalf of a company, unless, before the registration of the articles or the publication of the prospectus, or the delivery of the statement in lieu of prospectus, as the case may be, he has by himself or by his agent authorized in writing-
| | (a) signed and delivered to the Registrar for registration his consent in writing to act as such director; and | | |
| | (b) either-
| | | (i) signed the memorandum for a number of shares not less than his qualification, if any ; or |
| (ii) taken from the company and paid for, or agreed. to pay for, his qualification shares, if any ; or |
| (iii) signed and delivered to the Registrar for registration an undertaking in writing to take from the company and pay for his qualification shares, if any : or |
| (iv) made and delivered to the Registrar for registration a statutory declaration to the effect that number of shares, not less than his qualification, if any, are registered in his name. |
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| (2) Where a person has signed and delivered as referred to in subsection (1) an undertaking to take and pay for his qualification shares, he shall, as regards those shares, be in the same position as if he had signed the memorandum for that number of shares. |
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| (3) On the application for registration of the memorandum and articles of a company, the person making such application shall deliver to the Registrar a list of the persons who have consented to be directors of the company, and, where such list contains the name of any person who has not so consented, the person making such application shall be guilty of an offence and shall be liable to a fine not exceeding five hundred rupees. |
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| (4) Any reference in this section to the share qualification of a director or proposed director shall be construed as including only a share qualification required on appointment or within a period determined with regard to the time of appointment and any reference therein to qualification shares shall be construed accordingly. |
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| (5) The provisions of this section shall not apply to-
| | (a) a company not having a share capital; or | | |
| | (b) a prospectus issued by or on behalf of a company after the expiration of one year from the date on which the company was entitled to commence business. | | |
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Sri Lanka Consolidated Acts