An individual who is a company director (while not bankrupt) becomes bankrupt while in office.
Is he permitted to remain a company director? If not, is he automatically struck of the company's list of directors or does he remain a director until someone (presumably the trustee in bankruptcy) removes him?
In our office the general thought is that he is not permitted to remain a company director, but if that is the general case, why is it common practice (and I believe it to be the case) that a shareholder's agreement normally requires that a director resign if he is declared bankrupt? Such a clause appears superfluous if he is not permitted to remain a director anyway under other legislative provisions.
Thanks for any insight.
With kind regards