CHAPTER 7

Question 1

TYPES OF DIRECTORS:

Answer 1

1. Alternative Director
2. Ex officio Director
3. De Jure Directors
4. De Facto Directors

Question 2

ALTERNATIVE DIRECTOR:

Answer 2

a person is detected or appointed to serve, as the occasion requires, as a member of the board of the company in substitution for a particular elected director of the company.

Question 3

EX OFFICIO DIRECTORS:

Answer 3

is a process where a director is appointed automatically by holding another office

Question 4

DE JURE DIRECTORS:

Answer 4

a person is properly appointed as a director and the pretended director acts as if he was appointed.

Question 5

DE FACTO DIRECTORS:

Answer 5

a person is appointed as a director, but the appointment is invalid due to an irregularity in the procedure.

Question 6

a person is INELIGIBLE to be a director if the person:

Answer 6

-is a juristic person
-is an emancipated minor
-does not satisfy the qualifications set out in the company’s MOI

Question 7

a person is DISQUALIFIED from being a director if the person:

Answer 7

-is an unrehabilitated insolvent
-is prohibited in terms of any public provision
-is removed from an office of trust, on grounds of misconduct
-was convicted and imprisoned for various offences including fraud

Question 8

VACANIES ARISE WHEN:

Answer 8

1. director dies or resigns
2. removed by a resolution of the board
3. removed by a resolution of shareholders
4. removed by a court order
5. ex officio director ceases to hold qualification or title