(1) No person shall hold the office of director of an insurer in the following cases:-
(a) According to section 50. In case of ineligibility to hold the office of director,
(b) From the group represented in the board of directors - If the resolution presented in the general meeting to remove from the position of director by at least ninety one percent of the shareholders of the same group is passed by a majority, Explanation: For the purpose of this section, "group" means the group of founders and general shareholders.
(c) If the director's resignation from his position is accepted, (d) If the authority instructs him to remove him because he has acted contrary to the interests of the insurer or the insured, and that he is unfit to perform the duties of the director of the insurer.
(2) If the insurer believes that one of its directors has acted contrary to this Act or the regulations made under this Act or the instructions of the authority, or if any director is not holding such a position, the insurer shall inform the authority in writing within fifteen days.
(3) According to sub-section (2), if any director is found in writing to be unfit to continue in that position, the authority may instruct the insurer to remove such director from the position after necessary investigation.