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

Under the usual company law rules covered in LW Global, which of the following people is most likely to be disqualified from being appointed as a director of a company?

A person subject to a court disqualification order for unfit conduct, such as in an earlier insolvent company, cannot properly be appointed as a director. Being a majority shareholder or holding another directorship does not disqualify anyone from appointment.

  1. AA person who is a shareholder holding more than half of the company's shares
  2. BAn individual subject to a court-imposed disqualification order due to unfit conduct in a previous insolvent companyCorrect
  3. CA person who is already a director of another unconnected company

Explanation

A court may disqualify a person who has been found unfit, for instance following misconduct in a company that became insolvent; acting as director while disqualified is an offence. Being a majority shareholder or holding another directorship does not in itself bar appointment.

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