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  1. Given service contract stipulates 3 years contract for the director :
    (i) does he/she have to offer himself/herself for yearly re-election at annual AGM?
    (ii) is he/she still eligible to be re-elected after completion of 3 years contract or he/she must compulsorily break ties with the board?

  2. Whether P1 Book Study Text. Covers the whole Syllabus of acca. Whether Any other Book will your also recommend with this module.

    Whether Open tuiton Study material is sufficient

    • Any study text by a reputable provider will cover the entire syllabus

      I don’t recommend any other text – in fact, I don’t even recommend a study text even though it may be by a reputable provider

      You should have plenty enough material with a revision kit / exam kit together with the OT course notes and the recorded lectures …. and lots of reading of past exam questions and answers and taking the Ethics module and listening to the world news on the BBC and following all the various sagas about FIFA and BHS and corrupt politicians and articles about bribery and corruption and Goldman Sachs and …. et cetera et cetera

      And, next time, post your question on the Ask ACCA Tutor forum – that way you will guarantee that I see your post. This time you were fortunate but you may not be so lucky next time

  3. it is said there should be a formal assessment of the board’s performance annually. who should be responsible for the annual assessment? or who should carry out the assessment task?
    many thanks…

    • Better to put this on the Ask the Tutor page – that way I would be sure to see it and reply. As it is, you were lucky that I happened to notice it!

      Who does the annual review? The non-executive directors! Or a sub-committee of non-executive directors

      They may even take outside advice from, for example, a recruitment agency

      Ok?

  4. Sir, what does that mean that director service contract should not be more excess of one year but the reelection of directors is after 3 years?

    What are the connections between directors contract and directors reelection?

    • You are appointed as a director to serve such number of years as your appointment is for

      For an FTSE 500 company, you retire each year and seek reelection

      For a Plc not an FTSE 500 company, 3 years is normal

      For a private company, it depends what the constitution says but typically there’s no time period mentioned

      The idea of restricting service contracts is to preclude the possibility of having to pay (say) 3 or 4 years’ salary by way of compensation when a company wishes to get rid of a director

      Ok?

    • What’s in a name? You can call them whatever you wish. It always intrigues me to see how many people in the United States hold the title “Vice President” in companies yet the equivalent position in a UK company could well be simply “manager” or “officer” (sales office manager or accounts manager)

      But doesn’t Vice President sound so much more elevated?

      Call up on your computer the financial statements for the UK company Devro Plc and scroll through until you get to the brief biographies of the key personnel. You’ll see that, at least in the case of Devro, the management team is not the same as the executive directors and, in fact, some of the management team hold the title of, for example, operations director. But they are not executive directors of which, in Devro’s case, there are just two

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