Which of the following is a ground for director disqualification by court order?

Prepare for the HKSI Paper 1 Exam with our targeted study tools. Practice with multiple choice questions featuring detailed explanations and hints. Ensure your success on the exam day!

Multiple Choice

Which of the following is a ground for director disqualification by court order?

Explanation:
Ground for director disqualification by court order centers on removing someone who has abused their role or harmed the company or its creditors, especially through dishonest conduct. Fraud around companies fits this purpose perfectly: a director who engages in fraudulent acts in connection with company affairs demonstrates serious dishonesty and mismanagement, and the court can disqualify them to prevent further harm and to uphold the integrity of corporate governance. Diplomatic status isn’t related to running a company and wouldn’t justify disqualification. Age over 65 is not a statutory disqualification criterion, and non-resident status likewise isn’t a direct ground for such an order.

Ground for director disqualification by court order centers on removing someone who has abused their role or harmed the company or its creditors, especially through dishonest conduct. Fraud around companies fits this purpose perfectly: a director who engages in fraudulent acts in connection with company affairs demonstrates serious dishonesty and mismanagement, and the court can disqualify them to prevent further harm and to uphold the integrity of corporate governance.

Diplomatic status isn’t related to running a company and wouldn’t justify disqualification. Age over 65 is not a statutory disqualification criterion, and non-resident status likewise isn’t a direct ground for such an order.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy