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  1. Hello sir,

    Q1 Does the company directors disqualification act apply only to public co. or private also??

    Q2 How is it possible to appoint new directors when all have had to resign?
    A senario of vodafone, it is listed in one among 350 FTSE and it has more than million shareholders and most of them if not all dont vote to elect directors and this leads me ask HOW are directors actually appointed????
    are they elected like MPs in parliament or district councilors

    • “are they elected like MPs in parliament or district councilors” – No

      Very very few shareholders generally turn up to attend annual general meetings. But they always have the opportunity to complete a proxy form that appoints someone else to vote on their behalf

      This typically will appoint the Chair of the company as the proxy

      And don’t forget that 2 or more people, present in person or by proxy, is all that’s ofter needed to conduct business validly at an AGM

      The Chair will lead the meeting and call separately and successively for resolutions to be discussed and then, if all members present have had their say, the Chair will call for a vote – initially by a show of hands but then possibly (if it looks to be a close call) by a poll

      So, in summary, directors are appointed by members’ resolutions

      A director’s resignation takes effect from the END of the meeting but, in the course of the meeting, that director may be reappointed for another year with effect from the end of the meeting

      So, for the millionth part of a nano-second, that director is not in office but is then instantly re-appointed

      OK?

      In future your questions would be better put onto the Ask ACCA Tutor forum – that way will guarantee that I see your post and then I SHALL answer it. Only rarely do I see posts in “Latest Comments”

  3. Dear Mike,

    I must say thanks very much for very interesting lectures. I attended some very dull classes until i have found your lectures! Never been to classes that a lecturer with very wide general knowledge and encourage students to learn not memorise. Thanks very much again.

  5. Dear Mike

    Have to say that your style of teaching has a very relaxing effect….

    I was scared almost out of my wits about F4, and on top of that I am a self-study student.

    Then finally I have good internet speed, and though it’s just before the exams, it’s better late than never.

    Thanks Opentuition, and so many thanks, Mike!

    Just hope that it will be enough to pass…. what do you think??

  7. Sir! I’m getting a little confused about the 1/3 rotation procedure.
    As far as I understand, 1 of the 20 directors has to retire at the AGM because that director was re-appointed by the rest and is going to submit to the re-elections again. Out of the remaining 19, the 1/3 procedure is applied for re-election? The retirement of the 6 out of the remaining 19 is for the purpose of deciding whether or not we want 6 of those directors to remain or be replaced, right?

    • The idea of the one third rotation is to give the members of the company the opportunity to decide whether they wish to continue with the existing directors or whether to remove some (or all) of them.

      For Heaven’s sakes, don’t get hung up on something as trivial as this. Your summary above is correct but I get the feeling that this has been going through your mind for weeks and that you’re now beginning to lose sleep over it! In a non-top 350 public company in the UK, one third of the directors shall retire each year. For a top 350 company, ALL directors shall retire each year.

      Of course, all these retiring directors can submit themselves for re-election and (normally) the members will vote to re-elect

      • Thanks for clearing 馃榾 I hope I’m not giving you a hard time! I guess it is the result of losing sleep. But I’m just making sure that every little detail is clear before I attempt the exam for the first time.

  8. Dear Mike,

    Your way of teaching is relaxing as if you were sat in a bar and discussing Business with your colleagues and thank you for that.
    However, the problem is remembering all these Statutory provisions and section s for each Act. Can I therefore ask you, is it compulsory to state the Section no of a particular Act???

    For example, do I have to state S.213 of Insolvency Act 1986, or S.96 or ERA 1996.

    Please kindly advise at your earliest.

    Many thanks Sir…

  10. Mike, in regards to Alternate directors, in my country Trinidad & Tobago, alternate directors are a norm. I work for a credit union, and our Board of Directors consist of 12 persons and 2 Alternates. Our Credit Committee (in charge of Loans) consists of 5 persons and 2 Alternates as well as our Supervisory Committee (the watchdogs of the other directors as well as the company) also has 5 persons and 2 Alternates.Every year at our annual general meeting, 4 persons go up for election/re-election for the Board, 2 or 3 for the Credit Committee and all 5 persons for Supervisory. The Alternates for all 3 groups, also have to go up for election every year, if they want to be on the committees. The persons who become alternates are the next 2 persons who got the most votes after the required persons were elected. The alternates for the Board are invited to the monthly statutory meetings only, but the only time they serve on the Board is if one of the directors will be out of the country /ill or any other reason for a certain amount of time. The absent director do not get to choose anyone he wants, as they would have been elected as the 1st and 2nd alternate. So the 1st alternate would be automatically the one chosen. He (the alternate) does not vote on matters as the absent director wants, he would vote and contribute to the meeting as he sees fit. He is not obligated to follow instructions of the absent director. In other words he has a mind of his own.
    In regards to the Credit and Supervisory committees, the same thing applies. The 1st alternate, would be informed of the absent committee member and for how long a period, and if he is unavailable or another member will be unavailable as well, for a time, the 2nd alternate would also be requested to attend meetings, and they both operate in the meetings as they see fit.
    just some info for you.

  15. Dear Sir,

    I have 512MB internet speed at my home, whenever i open a lecture after some time it get stopped and then i need to again restart and go the same place of lecture where i was before.

    Kindly if you could help with above issue, as it is very essential for me.

    Thanks for cooperation.

    Regards,

    Sajid

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