(1)
As from the commencement of this Act, an individual is not capable of becoming a member of a company if he is—
(a)
of unsound mind and has been so found by a court in Nigeria or elsewhere ; or
(b)
an undischarged bankrupt.
(2)
A person under the age of 18 years shall not be counted for the purpose of determining the legal minimum number of members of a company.
(3)
A corporate body in liquidation is not capable of becoming a member of a company.
(4)
Where, at the commencement of this Act, any person falling within the provisions of subsection (1) is a member of a company by reason of being a shareholder of the company, his share vests in his committee or trustee, as the case may be.
(5)
Where, after the commencement of this Act, any shareholder purports to transfer any share or shares to a person falling within the provisions of subsection (1), the purported transfer shall not vest the title in the shares in that person, but the title remains in the purported transferor or his personal representative who holds the shares in trust for that person during the period of his incapacity.