Section 174 - Share qualification of a director

(1) Except as otherwise provided in the constitution of a company, a director is not required to be a member of the company or hold a share in the company.

(2) Where the constitution of a company requires a director to hold a specified share qualification, every director shall obtain that qualification within two months after appointment as director or a shorter period that may be fixed by the constitution.

(3) The office of director shall be vacated if the director fails to hold the specified share qualification within two months after appointment or if at any time after the expiration of that period that person ceases to hold that qualification.

(4) Where a company amends the constitution so as to introduce or increase the requirement of a share qualification, every director holding office at the date of the amendment shall have two months within which to obtain the qualification and shall not vacate office under this section unless that director fails to do so.

(5) A person who vacates office under this section is not qualified to be re-appointed a director of the company until that person has obtained the qualification.