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

Zephyr Ltd's constitution is silent on how directors are to be appointed. The founders want to appoint Amara as the first director immediately after incorporation. Under the usual position in the Global variant of company law, who normally makes the first appointment of directors?

The first directors are normally named in the incorporation documents or appointed by the subscribers or incorporators. The registrar merely records this information, and auditors or bankers play no role in appointing directors at formation.

  1. AThe company's external auditor
  2. BThe subscribers or incorporators named in the incorporation documentsCorrect
  3. CThe company's bankers
  4. DThe government registrar of companies, after a vote

Explanation

On formation, the first directors are normally named in the incorporation documents or appointed by the subscribers or incorporators. The registrar only records the appointment and does not choose directors. Auditors and bankers have no role in appointing directors.

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