Does going bankrupt make them ineligible to serve on the board of a non profit society?
I am a member of a non-profit society governed by the Societies Act. My association is revising their Bylaws. The proposed Bylaws have an article that states that someone is ineligible for or must resign from the board if they have declared bankruptcy. They state that the law on bankruptcy is that a person cannot be in a position of making decisions, therefore they would be ineligible for election or if on the board, would have to resign. Is this correct? Would a person have to resign from a position as a Director in a non-profit society (sporting)?
The only restriction in the Bankruptcy and Insolvency Act concerning directors is that a person is not allowed to be a director while in bankruptcy.
A former bankrupt is allowed to be a director.