ACCA SBL Syllabus B. Governance - Director's removal - Notes ^{10 / 12}

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

1. Death

2. Resignation

3. Not seeking re-election (see above)

4. Bankruptcy

5. 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