Vactional And Removal Flashcards
1
Q
Vactional
A
Vacation of Office and Removal
3.1 Vacation of Office
A director is considered to have vacated their office if:
- They become ineligible to be a director
- They miss three consecutive board meetings without leave
- They or their firm accept a loan or guarantee from the company against the Companies Act
- They accept an office of profit without the company’s sanction
A company can add more grounds for vacation of office in its articles.
3.2 Removal of Directors
A director can be removed by the company members through a resolution. The removal is not valid if the votes against removal equal or exceed:
- For an elected director: the minimum votes required to qualify as a director in the last election
- For an elected unopposed director: the same as above
- For first directors or those filling casual vacancies: the average votes calculated by multiplying the number of directors for the term by the number of voting shares, then dividing by the number of directors for the time being.
