Management, administration and the regulation of companies — ACCA Practice Question 16

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Recall the specific statutory provision (s.168) that gives shareholders the ultimate power to remove directors, and the procedural safeguards attached to it.

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B.By passing an ordinary resolution at a general meeting, requiring special notice.✓ Correct

Section 168 of the Companies Act 2006 allows shareholders to remove a director by an ordinary resolution (simple majority) at a general meeting. However, 'special notice' of 28 days must be given to the company before the meeting, and the director has the right to be heard at the meeting.

Common mistakes

Thinking a special resolution is required, or that directors can vote to remove a fellow director.

Section A

Under the Companies Act 2006, what is the statutory procedure for shareholders to remove a director before the expiration of their period of office?

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Full Answer

Common mistakes

Practice the full ACCA LW — Corporate and Business Law Practice Exam 6

More questions from this exam

Section A Under the Companies Act 2006, what is the statutory procedure for shareholders to remove a director 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 6

More questions from this exam

Section A

Under the Companies Act 2006, what is the statutory procedure for shareholders to remove a director before the expiration of their period of office?