CMA Final · Corporate and Economic Laws · Inspection, Inquiry and Investigation
An officer of a company under investigation is convicted of an offence of disobeying an inspector's direction under section 207. What is the consequence for his office?
On conviction under section 207, the director or officer is deemed to have vacated his office from the date of conviction and is disqualified from holding an office in any company. The disqualification is not limited to the company concerned and needs no Tribunal confirmation.
- AHe continues in office until the next general meeting decides on removal
- BHe is deemed to have vacated his office from the date of conviction and is disqualified from holding office in any companyCorrect
- CHe is disqualified only from the company in which the offence occurred, for one year
- DHe is suspended from office until the Tribunal confirms the conviction
Explanation
Section 207(4)(ii) provides that a convicted director or officer is deemed to have vacated office on and from the date of conviction and is disqualified from holding an office in any company. It is not limited to the one company and does not await any Tribunal confirmation.
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