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

Halden Ltd's board wishes to appoint Rosa, who is a minor aged 16, as a director in a jurisdiction that sets a minimum age of 18 for directors. What is the correct position?

The appointment is invalid. A statutory minimum age for directors is a mandatory eligibility rule that the company cannot waive through its articles, board consent or parental consent, so a 16-year-old cannot validly be appointed where the minimum is 18.

  1. AThe appointment is valid because the articles can override legislation
  2. BThe appointment is valid if all existing directors consent
  3. CThe appointment is valid if Rosa's parents sign a consent
  4. DThe appointment is invalid because the statutory minimum age cannot be waived by the companyCorrect

Explanation

Statutory eligibility rules, such as a minimum age, bind the company and cannot be overridden by the articles or by consent of directors or parents. Rosa at 16 is therefore ineligible and the appointment is invalid.

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