Chapter 12 Self-test questions

. Which one of the following will not cause a director to vacate office under the model articles?

If a director is prohibited from being a director by virtue of the CA 2006

If the director is convicted of a criminal offence

If a bankruptcy order is made against the director

If a registered medical practitioner opines in writing that the director is physically or mentally incapable of being a director and may remain so for more than three months

If a director is prohibited from being a director by law

. Which one of the following statements regarding retirement by rotation is untrue?

The model articles for private companies do not provide for retirement by rotation

The model articles for public companies do provide for retirement by rotation

The CA 2006 requires the directors of public companies to retire by rotation

The UK Corporate Governance Code states that directors of companies with a premium listing should be subject to annual re-election

. Section 168 of the CA 2006 provides that the members can remove a director by passing a special resolution?

True

False

. Which one of the following statements regarding s 168 is untrue?

A single resolution cannot be used to remove multiple directors

The written resolution procedure cannot be used

Special notice of the resolution is required

The director whose removal is being sought has the right to speak at the meeting

. The only way that the members can remove a director is via s 168 of the CA 2006.

True

False

. Which one of the following is not a ground for disqualification under the CDDA 1986?

A breach of competition law

Participation in wrongful or fraudulent trading

Conviction of an indictable offence

Persistent breaches of companies legislation

Where a director is removed by the members under s 168

Conviction of certain offences abroad

Unfitness in an insolvent company

Where it is in the public interest to disqualify

. Which one of the following statements regarding s 6 of the CDDA 1986 is untrue?

If the s 6 conditions are met, the court must disqualify the director

A disqualification undertaking is not available under s 6

A director disqualified under s 6 will be disqualified for at least two years

Section 6 can only be used in relation to directors of insolvent companies

. The courts can disqualify a person from acting as a director of a specific type of company.

True

False

. Most disqualifications are put into effect by?

A disqualification order

A disqualification undertaking

. Which one of the following statements is untrue?

A disqualified person can continue to act as director if he obtains leave to act from the court

A person who breaches a disqualification order or undertaking can become liable for the debts of the company

Breach of a disqualification order is an either way offence

Breach of a disqualification undertaking is a summary offence

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