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ACCA Applied Skills · Corporate and Business Law (Global) · Company directors

Delta Plc appoints Mira as a director. Mira is 17 years old, and the law of the jurisdiction requires directors to be at least 16. Mira is also an undischarged bankrupt who has not obtained court permission to act. Which statement best describes the position?

Mira is disqualified because she is an undischarged bankrupt who lacks court permission, even though she meets the minimum age. Statutory disqualification cannot be overridden by a members' ordinary resolution or by the agreement of the other directors.

  1. AMira is disqualified from acting as a director because of her undischarged bankruptcy, despite meeting the minimum ageCorrect
  2. BMira may act as a director because she meets the age requirement
  3. CMira may act as a director if members approve her by ordinary resolution
  4. DMira may act if the other directors agree unanimously

Explanation

Meeting the minimum age is only one requirement. An undischarged bankrupt is barred from acting as a director without court permission, and neither a member resolution nor board agreement can override that statutory bar.

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