BL – May 2023 – L1 – SA – Q11 – Company Law

Identify when shareholding qualification is required for a director.

Question

When is shareholding qualification required of a director?

A. To screen those qualified
B. At the direction of the Corporate Affairs Commission
C. When stipulated by the Memorandum of Association
D. When stipulated by the Articles of Association
E. When required by a Bill

Answer

Explanation:
Option D is correct because a shareholding qualification for a director is typically specified in the company’s Articles of Association. It outlines the conditions under which a director must hold a certain number of shares in the company to qualify as a director.

Tags: Company Law, Corporate Governance, Director Qualification, Shareholding

Topic: Company Law
Series: MAY 2023

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