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Still confused in directors disqualification under model articles

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Still confused in directors disqualification under model articles

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 30, 2017 at 7:57 pm #413791
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Hello

    I am still confused in directors disqualification under model articles. Are these 3 grounds for disqualification of director under model articles?
    1) director becomes insane
    2) bankruptcy
    3) director is absent from board meeting without permission for 6 months

    October 31, 2017 at 6:38 am #413814
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    The word “disqualify” is reserved for the context of a director being disqualified under the Company Directors Disqualification Act

    Your use of the word is therefore incorrect and misleading

    There is nothing in model articles about directors being disqualified – haw can there be … it’s for a Court to decide whether a director should be disqualified

    There is, as I have already pointed out to you in an earlier response to this same question, article 18 within the model set that states:

    “Termination of director’s appointment (note, this is NOT the same as disqualification)

    18. A person ceases to be a director as soon as—
    (a) that person ceases to be a director by virtue of any provision of the Companies Act 2006 or is prohibited from being a director by law;
    (b) a bankruptcy order is made against that person;
    (c) a composition is made with that person’s creditors generally in satisfaction of that
    person’s debts;
    (d) a registered medical practitioner who is treating that person gives a written opinion to the company stating that that person has become physically or mentally incapable of acting as a director and may remain so for more than three months;
    (e) [paragraph omitted pursuant to The Mental Health (Discrimination) Act 2013]
    (f) notification is received by the company from the director that the director is resigning from office, and such resignation has taken effect in accordance with its terms.”

    I’ve given this some thought and I’ve decided that I can find no clearer way of answering you

    I just hope that this time I have succeeded in explaining the situation to you clearly enough

    OK?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Still confused in directors disqualification under model articles’ is closed to new replies.

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