ExpertHard1 markMultiple Choice
Syllabus F: Management, administration and the regulation of companiesSection ACorporate and Business Law
ACCA · Question 38 · Syllabus F: Management, administration and the regulation of companies
To remove a director before the expiration of their period of office under section 168 of the Companies Act 2006, what type of resolution and notice is required?
To remove a director before the expiration of their period of office under section 168 of the Companies Act 2006, what type of resolution and notice is required?
Answer options:
A.
Ordinary resolution with special notice (28 days).
B.
Special resolution with 14 days' notice.
C.
Ordinary resolution with 14 days' notice.
D.
Special resolution with special notice (28 days).
How to approach this question
Recall the specific statutory mechanism for removing a director.
Full Answer
A.Ordinary resolution with special notice (28 days).✓ Correct
A company may by ordinary resolution (>50%) remove a director before the expiration of their period of office. However, 'special notice' of the resolution must be given to the company at least 28 days before the meeting. This gives the director time to prepare a defence.
Common mistakes
Thinking a special resolution (75%) is needed to remove a director.
Practice the full ACCA LW — Corporate and Business Law Practice Exam 3
60 questions · hints · full answers · grading
More questions from this exam
Q01In the English legal system, which of the following accurately describes the difference between t...EasyQ02Which of the following courts is bound by the decisions of the Court of Appeal (Civil Division)?MediumQ03When interpreting statutes, which rule allows a judge to consider the original common law defect ...MediumQ04A tech startup, CloudNova, advertises a new cloud storage package on its website for £10 per year...MediumQ05In contract law, past consideration is generally not valid. However, there are exceptions. Which ...Hard