Companies Act 2014 section 136

Share qualifications of directors

Section 136 deals with the rules that apply where a company's constitution requires its directors to hold a specified number or value of shares in the company as a qualification for holding office.

• There is no statutory obligation on a company to require directors to hold any share qualification — it only applies where the company's own constitution imposes such a requirement.
• A director who fails to obtain the required share qualification within 2 months of appointment (or a shorter period if the constitution specifies one) must vacate office.
• A director who initially obtains the qualification but later ceases to hold it must also vacate office.
• A director who vacates office for failing to meet the share qualification cannot be reappointed until they have obtained the required shares.