Vacation of office
In this lesson, you'll learn how directors can leave office and the circumstances that force them out—essential knowledge for the Corporate and Business Law paper.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 How directors leave office
- 1:12 Removing directors by the board
- 1:44 Removing directors by shareholders
- 2:36 Weighted voting rights and director removal
- 3:48 Disqualification grounds and procedures
- 5:00 Fraudulent versus wrongful trading
- 6:05 Disqualification penalties and timescales
- 7:08 Breach of disqualification orders
About this lesson
You'll explore both voluntary exits (retirement, not standing for re-election) and compulsory removal (dismissal by shareholders, disqualification, bankruptcy), plus the legal procedures and voting requirements involved. The lesson also covers the Disqualification Act 1986, showing which serious breaches—from fraud and wrongful trading to persistent late filing—can ban someone from being a director, and what happens if they act as a director while disqualified. Understanding vacation of office and disqualification is crucial for exam questions on director liability and corporate governance, and for recognising real-world situations where directors lose their position or face legal consequences.
Duration: 8m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Corporate and Business Law course
All 76 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in