Legum | Quiz on Qualification of Directors in Ghana

Quiz on Qualification of Directors in Ghana

1. All the following classes of persons are not automatically disqualified from being, except……………..

Persons who have been disqualified to act as Company Secretary, receiver, manager or liquidator of a company

Persons who are being investigated by a criminal investigating body or by the Registrar or the equivalent in a foreign jurisdiction regarding the matters in paragraphs (a) to (d).

Persons for whom it appears they are debarred by the competent authority from being a member of a recognised professional body as the result of a disciplinary inquiry

Persons adjudged bankrupt in Ghana or elsewhere.

2. Two years ago, Ziyaad was adjudged bankrupt in China and his Lawyer, Miss Rosenthal, informed him that per section 177(2) of Act 992, he is automatically disqualified from being a director for a period of five years. Do you agree?

No, because he was adjudged bankrupt outside the jurisdiction.

Yes, because an undischarged bankrupt is disqualified from being a director, unless that bankrupt has been granted leave to act as director by the Court by which that person was adjudged bankrupt

Yes, because persons adjudged bankrupt in Ghana or outside Ghana in the last five years are automatically disqualified from being directors.

No, because being adjudged bankrupt is not one of the reasons for automatic disqualification.

3. Which of the following disqualification criteria is not absolute under section 173?

Being an undischarged bankrupt

Being a person adjudged to be of unsound mind

Being an infant

Being a body corporate

4. Under section 177(2) of Act 992, all the following class of persons are automatically disqualified from being a director of a company for a period of five years, except

Persons who have been disqualified to act as Company Secretary, receiver, manager or liquidator of a company

Persons who have been directors or senior executives of a company that has become insolvent within the last five years on account of or partly as a result of the culpable activities of those directors.

Persons who were declared bankrupt in the last five years.

Persons who have been convicted within the last five years of an offence involving fraud or dishonesty, or relating to the promotion, formation or running of a company.

5. The year is 2024. In 2023, Takashi Ltd, a company where Ferdinand was a senior executive, became insolvent partly because of Ferdinand’s culpable activities. What is the legal effect of this?

Ferdinand must seek leave from the court before he can become a director of another company.

Ferdinand can be disqualified from being a director by a court order

Ferdinand is automatically disqualified from being a director.

There is no legal effect.

6. Contrary to the code of ethics of the Ghana Bar Association (GBA), Lawyer Dokurugu had sexual relations with his client. Following a disciplinary inquiry, he was debarred by the GBA. He can be a director of a company.

False

True

7. Under section 173 of Act 992, an infant is not qualified to be appointed or to act as a director. An infant, per Act 992, is

A natural person under the age of 18 or any other age that is declared by an enactment to be of full age for legal purposes.

A natural person under the age of 16 or any other age that is declared by an enactment to be of full age for legal purposes

A natural person under the age of 21 or any other age that is declared by an enactment to be of full age for legal purposes

8. The Constitution of Legum provides that a person intending to be a director must have at least 2 shares in the company. Under Act 992, ……………………….

The provision in the constitution will be of no effect.

A person wanting to be director has at least three months to obtain the shares after he is appointed a director.

The provision in the constitution will be of no effect.

A person can still be appointed a director without having 2 shares on the date of his appointment.

9. Immanuel is under investigation by the Economic and Organised Crime Office (EOCO) following allegations that he was convicted in the UK for an offence involving insider dealing. The effect of this under Act 992 is that………………..

He can be a director because his alleged conviction was in the UK.

He cannot be a director for a period of five years.

He can be a director because an offence relating to insider trading does not prevent one from being a director.

A court can make an order stating that he shall not be a director for a specified period.

10. A person who has been disqualified to act as an auditor of a company is automatically disqualified for appointment as director for a period of five years.

True

False

11. One of the persons prohibited from being a director under section 173 is “a person who is prohibited from being ……………………………………. as a result of an order made under section 177 so long as the order remains in force unless leave to act as director has been granted by the Court in accordance with that section.

a promoter or secretary of, or being concerned or taking part in the management of a company

a secretary or auditor of, or being concerned or taking part in the management of a company

a director or secretary of, or being concerned or taking part in the management of a company

a director or promoter of, or being concerned or taking part in the management of a company

12. All the following persons are disqualified from being a director under Act 992 except:

A body corporate

A person adjudged to be of unsound mind;

A person detained in a mental facility

An infant

13. A person who has been disqualified to act as a liquidator of a company is automatically disqualified for appointment as director for a period of five years.

True

False

14. A person who has been disqualified to act as company secretary is automatically disqualified for appointment as director for a period of five years.

True

False

15. The year is 2024. In 2023, Kofi Abotsi was convicted of an offence relation to the promotion of a company. He is……………

Still qualified to be a director since his offence was limited to the promotion of a company.

None of the above.

Automatically disqualified from being a director but can seek leave of the court to be a director.

Automatically disqualified from being a director of a company for a period of five years.

16. An undischarged bankrupt can become a director of a company…

If he has been granted leave to act as director by the Court by which he was adjudged bankrupt.

Five years after he was declared bankrupt.

If the court is satisfied that he is fit to act as a director.

If he has been granted leave to act as director by a court of competent jurisdiction.

17. A person who has been disqualified to act as a manager of a company is automatically disqualified for appointment as director for a period of five years.

True

False

18. After a person is automatically disqualified from being a director for a period of five years under section 177(2), the court can make an order further disqualifying the person for a specified period.

True

False

19. A person who has been disqualified to act as receiver of a company is not automatically disqualified for appointment as director for a period of five years.

False

True

20. Under Act 992, no positive qualification criteria is provided for a person to be a director

False

True

21. A person may be prohibited from being a director or promoter of a company by a court order

False

True

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