Under the Companies Act 2006, how can a director of a public company be removed from office before the expiration of their period of office?

Answer options:

By a special resolution of the shareholders.

By a unanimous vote of the board of directors.

By an ordinary resolution of the shareholders, requiring special notice.

By an order of the court upon application by a creditor.

How to approach this question

Recall the statutory mechanism for removing a director under s.168 CA 2006.

Full Answer

C.By an ordinary resolution of the shareholders, requiring special notice.✓ Correct

Section 168 of the Companies Act 2006 provides that a company may by ordinary resolution (simple majority) remove a director before the expiration of their period of office. Special notice (28 days) must be given to the company of the intention to move such a resolution.

Common mistakes

Thinking a special resolution (75%) is required to remove a director.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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Under the Companies Act 2006, how can a director of a public company be removed from office before the expiration of their period of office?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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