ACCA Applied Skills · Corporate and Business Law (Global) · Company directors
Zenith Ltd is a private company whose articles are silent on the number of directors. Its members wish to appoint a new director by ordinary resolution at a general meeting. Which statement is correct under general company law principles in most Global jurisdictions?
Members may appoint a director by ordinary resolution unless the articles provide otherwise. Appointment is governed by the articles, and the general meeting retains the default power to appoint. A special resolution is not normally required for appointing a director.
- AThe members may appoint a director by ordinary resolution unless the articles provide a different methodCorrect
- BA director can only be appointed by the existing directors, never by the members
- CA director can only be appointed by a special resolution requiring 75% approval
Explanation
Directors are normally appointed as the articles provide, and the default position is that members can appoint by ordinary resolution. Nothing requires a special resolution, and the members' power is not excluded merely because the board can also appoint.
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.
More Company directors questions
- Zeta Ltd's articles are silent on who may appoint directors. At a general meeting, the shareholders want to add a new director, Mr Ito, to t…
- Zephyr Ltd's articles are silent on how directors are appointed. The company's first director, Amara, resigns. Under general company law pri…
- Orla Ltd, a private company, has articles requiring at least two directors. It currently has one director, Mr Shaw, who wishes to appoint hi…
- 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 directo…
- Zephyr Ltd is being incorporated in a jurisdiction that follows the Global variant company law rules. The founders wish to know who normally…
- Kora plc, a public company, holds a general meeting at which members pass a single ordinary resolution appointing three named individuals as…