Law - Chapter 8

    Cards (280)

    • According to the text, what determines if someone is considered a director under the Companies Act?
      Occupying the role of director
    • How are directors typically appointed according to the articles of a company?
      By existing directors
    • What type of resolution is required for appointing directors of public companies?
      Ordinary resolution
    • What is a de facto director?
      Someone who acts as a director
    • What powers does a de facto director have?
      The same powers as appointed director
    • Who is considered a shadow director?
      Someone whose directions directors act on
    • Who is excluded from being a shadow director?
      Professional advisor
    • What is the role of an alternate director?
      To attend and vote at meetings
    • Why might a director appoint an alternate director?
      If they are unable to attend
    • What is the role of an executive director?
      Performing a specific role
    • What happens if an executive director ceases to be a director?
      Their office will also terminate
    • What claim may an executive director still have if their office terminates?
      Breach of any service contract
    • What is the primary role of a non-executive director?
      Attends board meetings
    • How is the chairman of the board usually regarded?
      As a non-executive director
    • What is the function of a managing director (MD)?
      Carrying out day-to-day management
    • What is the minimum age requirement for a director?
      Sixteen
    • What is one reason a person must not be disqualified from acting as a director?
      Company Directors Disqualification Act 1986
    • How many directors must a public company have at least?
      Two
    • How many directors must every company have at least?
      One natural person
    • According to Hashmi v Lorimer-Wing 2022, what do private companies with a sole director and model articles need to do?
      Change the model articles
    • Why do private companies with a sole director and model articles need to change the model articles?
      Allow for board meetings
    • What happens to a director's actions if their appointment is later found to be defective?
      The actions are still valid
    • Within how many days should a change in directors be notified to the registrar?
      14 days
    • Where should any change in the directors of a company be recorded?
      Company's register of directors
    • What is the aim of the Economic Crime and Corporate Transparency Act 2023 regarding directors?
      Prevent fraudulent appointments
    • According to the text, what is being introduced under the Economic Crime and Corporate Transparency Act 2023?
      Identity verification
    • What does direct verification link a person to?
      Official document
    • What is one of the methods of identity verification for directors?
      Direct verification
    • What official documents can direct verification link a person to?
      Drivers license or passport
    • Who are Authorised Corporate Service Providers (ACSPs)?
      Intermediaries who verify a person's identity
    • What is the name of the other method of verification?
      Indirect verification
    • What is one way a director might leave office?
      Death of the director
    • What is another way a director might leave office?
      Winding up of the company
    • Name one way a director might leave office?
      Removal
    • What is another way a director might leave office?
      Disqualification
    • What is another way a director might leave office?
      Resignation
    • What is another way a director might leave office where required to do so by articles?
      Prohibition by law
    • What is another way a director might leave office where required to do so by articles?
      Bankruptcy
    • What type of resolution is needed to remove a director from office?
      Ordinary resolution
    • What is another way a director might leave office where required to do so by articles?
      Written medical opinion
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