Section 10 Directors: tenureI1

(1)

The articles of association must provide that—

(a)

the period of a non-executive director's appointment is to be a period, not exceeding 5 years, specified by the Scottish Ministers when making the appointment,

(b)

a person may be appointed to the office of non-executive director more than once,

(c)

no person may hold the office of non-executive director for a cumulative period exceeding 8 years.

(2)

The articles of association must provide that a person ceases to hold the office of director as soon as—

(a)

the person ceases to be a director by virtue of any provision of the Companies Act 2006 or is prohibited from being a director by law,

(b)

the person becomes insolvent, meaning—

(i)

the person's estate has been sequestrated,

(ii)

the person has granted a trust deed for, or entered into a composition contract with, creditors,

(iii)

the person has been adjudged bankrupt,

(iv)

a voluntary arrangement proposed by the person has been approved,

(v)

the person's application for a debt payment programme has been approved under section 2 of the Debt Arrangement and Attachment (Scotland) Act 2002,

(vi)

the person has become subject to any order or arrangement analogous to any of those described in sub-paragraphs (i) to (v) anywhere in the world,

(c)

a registered medical practitioner who is treating the person gives a written opinion to the Bank stating that the person has become physically or mentally incapable of acting as a director and may remain so for more than 3 months,

(d)

notification is received by the Bank from the person that the person is resigning from office, and such resignation has taken effect in accordance with its terms.

Annotations

Commencement

I1: S. 10 in force at 16.9.2020 by S.S.I. 2020/272, reg. 2