7(1)A person is not eligible for appointment as a member of the board if—
(a)he has, within five years of the date his appointment would take effect, been convicted in the United Kingdom, the Channel Islands, the Isle of Man or the Irish Republic of any offence and has had passed on him a sentence of imprisonment (whether suspended or not) for a period of not less than three months without the option of a fine;
(b)his estate has been sequestrated, he has made an arrangement with his creditors, he has been adjudged bankrupt, he has granted a trust deed for his creditors or a composition contract;
(c)he is incapacitated by mental illness; or
(d)he has been removed from office by the Secretary of State under section 24 of this Act.
(2)Where a person is disqualified under sub-paragraph (1)(b) above by reason of having had his estate sequestrated, the disqualification shall cease if and when—
(a)the sequestration of his estate is recalled or reduced; or
(b)he is discharged under or by virtue of the [1985 c. 66.] Bankruptcy (Scotland) Act 1985.
(3)Where a person is disqualified under that sub-paragraph by reason of having been adjudged bankrupt, the disqualification shall cease—
(a)unless the bankruptcy order made against him is previously annulled, on his discharge from bankruptcy; and
(b)if the bankruptcy order is so annulled, on the date of the annulment.
(4)Where a person is disqualified under that sub-paragraph by reason of his having made an arrangement with his creditors or granted a trust deed for his creditors or a composition contract, the disqualification shall cease when the arrangement or, as the case may be, trust deed or composition contract is no longer in force.