(1) A person who is an undischarged bankrupt (within the meaning of section 2 of the Companies Act, 1963) or who has been convicted on indictment of any offence involving fraud or dishonesty shall not -
(a) sign an application form for registration of a credit union,
(b) act as a member of the board of directors or the Membership Committee, Credit Committee or Supervisory Committee of a credit union,
(c) directly or indirectly take part in or be concerned in the management of a credit union, or
(d) permit his name to be put forward for election or appointment to any office referred to in paragraph (b) or (c) of this subsection.
(2) Whenever a person holding an office referred to in paragraph (b) or (c) of subsection (1) of this section becomes ineligible, by virtue of that subsection, to hold office, he shall forthwith cease to hold that office and the vacancy thereby created shall be deemed to be a casual vacancy and shall be filled accordingly.