Skip to content

ACCA Applied Skills · Corporate and Business Law (Global) · Insolvency and administration

Which of the following is a typical consequence of a director being disqualified by the court?

A disqualified director may not act as a director or take part in managing a company for the period of the order unless the court gives permission. The order does not make them repay all company debts or remove their shareholdings.

  1. AThe director may not, without court permission, act as a director or take part in the management of a company for the period of the orderCorrect
  2. BThe director must immediately repay all of the company's debts personally
  3. CThe director loses all shares held in any company

Explanation

A disqualification order bars the person from being a director or being involved in company management without leave of the court for the stated period. It does not make the director personally liable for all debts, and it does not strip shareholdings, so B and C are wrong.

Did you get it right without looking?

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

Practise Insolvency and administrationFree diagnostic mock

More Insolvency and administration questions