(1) No person shall be director who -
(a) is of unsound mind and stands so declared by a competent court; or
(b) is or has been convicted of any Offences which in the opinion of the Central Government, involves moral turpitude; or
(c) is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors.
(2) The appointment as director of any person who is a Member of Parliament or the Legislature of any State shall, unless within two months of the date of his appointment he ceases to be such member, be void on the expiry of the said period of two months and if any director is elected or nominated as a member of parliament or of any State legislature he shall cease to be a director as from the date of such election or nomination as the case may be,