Contents of Internal And External Documents of a Company:
There are two basic types of documents produced by an accounting system, external and internal documents.
External Documents
External documents such as invoices, payments vouchers, VAT report and tax returns are produced because someone outside the business needs them. These are termed 'documents' in first office.
Internal Documents
Internal documents are used inside the company to make decision about different things such as price information sales statistics and credit limit, payment forecast etc, These are termed 'reports' in First office.
Both the reports handed in to authorities, banks etc and those used for own use are based on a series of transaction. The records of these transaction are found among the documents of any business.
Qualification of a director :
As regards to the qualification of directors, there is no direct provision in the companies Act 2013. But, according to the different provision relating to the directors ; the following qualifications may be mentioned;
1. A director must be a person of sound mind .
2. A director must hold share qualification, if the article of association provides such .
3. A director must be an individual .
4. A director should be a solvent person .
5. A dirctor should not be convicted by the court for any offence, etc
Qualifications of a Director:
As regards to the qualification of directors, there is no direct provision in the Companies Act, 2013.But, according to the different provisions relating to the directors; the following qualifications may be mentioned:
1. A director must be a person of sound mind.
2. A director must hold share qualification, if the article of association provides such.
3. A director must be an individual.
4. A director should be a solvent person.
5. A director should not be convicted by the Court for any offence, etc.
Disqualifications of a director:
Section 164 of Companies Act, 2013, has mentioned the disqualification as mentioned below:
A person shall not be capable of being appointed director of a company, if the director is,
(a) Of unsound mind by a court of competent jurisdiction and the finding is in force;
(b) An undischarged insolvent;
(c) Has applied to be adjudicated as an insolvent and his application is pending;
(d) Has been convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence;
(e) Has not paid any call in respect of shares of the company held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call; or
(f) An order disqualifying him for appointment as director has been passed by a court in pursuance of section 203 and is in force, unless the leave of the court has been obtained for his appointment in pursuance of that section.