Can an administrator become incompetent? | ScriptaLegal | ScriptaLegal
Personal Business Packages & Subscriptions
Français About us Create a free account Log in
Interactive legal guides Legal frequently asked questions Legal blog Videos
ONLINE LEGAL DOCUMENTS
Frequently asked questions > Company > Business Corporation > Can a director become ineligible to perform their duties?

Can a director become ineligible to perform their duties?

Yes. A person must meet the eligibility requirements set out by law to serve as a director of a corporation. A person who ceases to meet these requirements may become ineligible to continue serving as such.

Disqualification may result from a situation expressly provided for by law or, in certain cases, from a court decision. The grounds for disqualification may vary depending on the law under which the company was incorporated.

Obtain a resolution to revoke the mandate of a director

When a director becomes ineligible during their term, the consequences of this ineligibility on their duties must be determined, and the necessary measures taken in accordance with applicable rules. Depending on the situation, the company may, in particular, have to fill the vacancy on the board of directors, since the ineligible director can no longer perform their duties or sit on the board, and update its corporate records and the information filed with government authorities.

In summary , a director must meet the eligibility requirements while in office. If they become ineligible under applicable law or decision, including a court order, the company must determine the necessary steps to address this situation.

This browser does not support this kind of file. Please download the file to view it: Download the file
An error has occurred.