(1) A person who has been adjudicated bankrupt and whose bankruptcy still subsists or who, in the previous 10 years, has been convicted of an offence in relation to a credit union or an offence involving fraud or dishonesty shall not -

(a) sign an application form for the registration of a society as a credit union;

(b) be qualified to be appointed or to act as an officer, auditor, receiver or liquidator of a credit union,

(c) directly or indirectly take part in or be concerned in the management or operation of a credit union; or

(d) permit his or her name to be put forward for election or appointment to any of the positions referred to in paragraph (b).

(2) If a person who is a member of -

(a) the board of directors,

(b) the board oversight committee, or

(c) a principal Committee,

of a credit union is adjudicated bankrupt or convicted of such an offence as is referred to in subsection (1), then such person shall forthwith cease to hold office and the vacancy thereby created shall be deemed to be a casual vacancy and be filled accordingly.