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

Zentra Ltd is a private company incorporated under a typical Global-variant company law regime. Its founders want to name the first directors in the incorporation documents. Which of the following is correct about the first directors of the company?

First directors are normally named in the incorporation documents and take office when the company is formed. No general meeting or court order is needed for the initial appointment, because the founders nominate them in the registration papers.

  1. AThey can only be appointed by a general meeting held after incorporation
  2. BThey are usually named in the incorporation documents and take office when the company is formedCorrect
  3. CThey must be appointed by the court on the application of the founders

Explanation

On incorporation, the first directors are commonly named in the application for registration or the constitution and take office when the company is formed. No prior general meeting or court order is needed. Option A is wrong because the initial appointment is made through the incorporation documents, not a later meeting.

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