Restrictions on appointment or advertisement of director

(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 any prospectus issued by or on behalf of the company, or in any statement in lieu of prospectus filed by or on behalf of a company, unless, before the registration of the articles or the publication of the prospectus or the filing of the statement in lieu of prospectus, as the case may be, he has by himself or by his agent authorised in writing– (a) signed and filed with the Registrar a 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) signed and filed with the Registrar a contract in writing to take from the company and pay for his qualification shares, if any. (2) On the application for registration of the memorandum and articles of a company, the applicant shall deliver to the Registrar a list of the persons who have consented to be directors of the company, and, if this list contains the name of any person who has not so consented, the applicant shall be liable to a fine not exceeding two hundred and fifty dollars. (3) This section shall not apply to– (a) a private company; 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.