Skip to content

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

Nimbus Ltd wishes to appoint Mr Vance, an undischarged bankrupt, as a director. In many jurisdictions following the Global-variant approach, which statement is correct?

An undischarged bankrupt is generally disqualified from acting as a company director unless the court gives permission. The company or its board cannot waive this statutory restriction, which exists to protect creditors and the public.

  1. AHe may act as a director freely because bankruptcy only affects personal property
  2. BHe may act only if the other directors unanimously approve
  3. CHe is generally disqualified from acting as a director without the permission of the courtCorrect

Explanation

An undischarged bankrupt is generally prohibited from acting as a director, or being involved in managing a company, unless the court gives permission. Board approval cannot override this statutory bar, so option B is wrong. Bankruptcy is not irrelevant to directorships, so option A is also wrong.

Did you get it right without looking?

One question tells you little. A timed set on Company directors shows your real accuracy, how long you take and where you lose marks.

Practise Company directorsFree diagnostic mock

More Company directors questions