(1)
A person is not qualified for appointment as a trustee of a debenture trust deed if he is—
(a)
an officer or employee of the company which issues debentures covered by the trust deed or of a company in the same group of companies as the company issuing debentures ;
(b)
less than 18 years of age ;
(c)
of unsound mind and has been so found by a court in Nigeria or elsewhere ;
(d)
an undischarged bankrupt ; or
(e)
disqualified under section 283 from being appointed as a director of a company, but a corporation shall not be disqualified from being appointed as a trustee.
(2)
If a trustee becomes subject to any of the disqualifications mentioned in subsection (1) after he has been appointed, he shall immediately cease to be qualified to act as a trustee of the debenture trust deed.
(3)
Any person who acts as a trustee of a debenture trust deed whose appointment is invalid under subsection (1) or who is disqualified from acting under subsection (2), commits an offence and is liable on conviction as the Court deems fit, or to such fines as the Commission shall specify in the regulation.