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June 26, 2016 at 12:21 am
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
June 26, 2016 at 10:22 am
“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
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”
October 13, 2015 at 12:20 am
In global law,do i have to know the case names and years too.
October 13, 2015 at 7:39 am
ABSOLUTELY NOT! Nor for English Law, incidentally
November 29, 2014 at 1:52 pm
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.
November 29, 2014 at 10:58 pm
Hi, that’s a lovely sentiment that you posted. I find English law a totally fascinating subject and hope that I encourage students also to find it interesting
Thanks for your kind comments 🙂
September 16, 2014 at 11:27 am
How many directors are required to retire at the first annual general meeting of a public company ?
October 13, 2015 at 7:40 am
All of them
June 5, 2014 at 8:25 pm
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??
April 11, 2014 at 7:03 pm
Mike you are like the best teacher I never had.i normally don’t like listening to lectures but you are so fun to listen to. Thanx alot
November 15, 2013 at 3:24 am
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?
November 15, 2013 at 1:09 pm
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
November 16, 2013 at 4:08 am
Thanks for clearing 😀 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.
June 8, 2013 at 11:41 pm
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…
Absolutely NO, NO, NO!
April 20, 2013 at 1:04 am
Dear @admin I am wondering that the administrator can appoint director or not ?
December 7, 2012 at 11:30 pm
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.
December 8, 2012 at 8:42 am
@cecel, Cecel – thanks for this. That is really illuminating. I have to admit that I have often wondered how the system works so I am very grateful to you 🙂
shahbaz Gohar says
November 21, 2012 at 9:04 pm
FTSE top 350 company?all directors must retire each year
November 21, 2012 at 10:12 pm
@shahbaz963, It means that if a company is one of the top 350 companies listed on the Financial Times Stock Exchange listing, then all the directors must retire each year
November 22, 2012 at 8:36 am
@MikeLittle, okkkkkkkkkk mikeee…….:)
November 22, 2012 at 8:37 am
@MikeLittle, thnxxx alottt..
November 20, 2012 at 5:48 pm
Thanks Alot 🙂
August 24, 2012 at 7:00 am
Hi, does the 1/3 rotation apply to just public companies, or private also of a certain size?
August 24, 2012 at 3:28 pm
I believe that it’s just public nowadays. Beware also FTSE 500 where all directors must resign each year
May 7, 2012 at 5:17 am
I could n’t find the link of the lecture. would you plz suggest me.
April 17, 2012 at 3:03 am
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.
April 17, 2012 at 8:06 am
sorry but we can’t make your internet connection faster
October 22, 2012 at 2:11 pm
@admin, That was rude!!
October 22, 2012 at 2:36 pm
@aq515, Oh dear! How can “sorry but we can’t make your internet connection faster” be considered “rude”??
There’s absolutely NOTHING in that comment that could be considered rude!
November 10, 2012 at 2:45 pm
@sajidhameed, 512MB ? or 512KB/sec, LOL I have the same speed as 512KB/sec and I watch all these lectures more smoother then youtube streaming, it is the best shockwave player I ever found on this website, Great Lecturer, Great Admin and also Great Website LOVE IT……
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