ACCA SBL Syllabus B. Governance - Director's removal - Notes 10 / 12
There are 3 main methods
Retire by Rotation
At AGM, every 3 years
Longest serving director retires first
Means a nice phased retirement of directors
Directors can be replaced in an orderly manner
Termination
Death
Resignation
Not seeking re-election (see above)
Bankruptcy
Disciplinary procedures
Disqualification
The reasons can be:
Wrongful trading - allowing the company to trade while knowing its insolvent
Not keeping proper accounting records
Failing to prepare & file accounts. 3+ defaults in filing documents in 5 years
Failing to send tax returns and pay tax
Previous
Board Committees
Syllabus B. Governance
B5. The Board Of Directors
Next up
Director's Remuneration
Syllabus B. Governance
B5. The Board Of Directors