- 15 Marks
BCL – July 2023 – L1 – Q3b – Company Directors and Other Officers
Explain factors disqualifying an individual from being a director and the legality of using a substitute director.
Question
Atibie family owned an enterprise devoted to the supply of plumbing materials. A business adviser working with H&H Bank advised the family to convert from an enterprise to a limited liability company to qualify for a discounted interest loan facility. The head of Atibie family stated as follows: “Any member of the family can be appointed as a board member of the new company.”
The head of Atibie family reasons that the company can make use of a Substitute Director in case they have no one to appoint as a substantive Director.
Required:
i) Explain FIVE (5) factors that could disqualify a member of Atibie family from being appointed a member of the board. (10 marks)
ii) Explain why the head of Atibie family is right or wrong on the use of a Substitute Director. (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Companies Act, Company Directors, Disqualification, Substitute Director
- Level: Level 1
- Topic: Company directors and other officers
- Series: JULY 2023