Section 277 CAMA 2020
Section 277 Companies and Allied Matters Act is about Share qualification of directors. It is under Chapter 11 (Directors) of the Act.
(1) The shareholding qualification for directors may be fixed bythe articles of association of the company and unless so fixed no shareholding qualification shall be required.
(2) It is the duty of every director who is by the articles of the company required to hold a specified share qualification, and who is not already so qualified, to obtain qualification within two months after his appointment.
(3) The office of director of a company is vacated if the director does not, within two months from the date of his appointment, obtain his qualification or after the expiration of the said period, he ceases at any time to hold his shareholding qualification.
(4) A person vacating office under this section is incapable of being re-appointed a director of the company until he has obtained his shareholding qualification.
(5) If, after the expiration of the period, any unqualified person acts as a director of the company, he is liable to a penalty in such amount as theCommission shall specify in its regulations for every day between the expiration of the said period or the day on which he ceased to be qualified, as the case may be, and the last day on which it is proved that he acted as a director.
