ACCA Applied Skills · Corporate and Business Law (Global) · Company directors
Karim is appointed a director of Alba Ltd by a board resolution. The articles allow the board to fill casual vacancies but require any director so appointed to retire at the next annual general meeting and offer himself for re-election. Karim is not re-elected at that meeting. What is the position?
Karim ceases to be a director. The articles made his board appointment subject to confirmation by members at the next AGM, and since he was not re-elected, his office ends automatically under the terms on which he was appointed.
- AKarim ceases to be a director because the articles required him to stand for election and he was not electedCorrect
- BKarim remains a director for the rest of the year because the board appointed him
- CKarim remains a director until the board passes a resolution to remove him
Explanation
The articles govern appointment and tenure. Karim's appointment by the board was provisional until the next AGM, and failing re-election his office ends. The board has no need to remove him.
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