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X, Y and Z are the only shareholders in XYZ Ltd each holding 1,000 ordinary...

X, Y and Z are the only shareholders in XYZ Ltd each holding 1,000 ordinary £1 shares. X is the only director of the company. The articles of association of XYZ Ltd provide that “in the event of any proposal to dismiss a director by ordinary resolution, the votes of the director are to count 3 times.” Which ONE of the following is CORRECT?

A.

X will be able to rely on the provision in the articles and outvote any proposal to dismiss him as a director.

B.

The provision in the articles is void as it effectively means that X is irremovable as a director of XYZ Ltd.

C.

The clause in the articles cannot be used by X as it is not an ordinary membership right.

D.

The company would be able to pass a special resolution removing the provision in the articles and then dismiss X by passing an ordinary resolution.

CIMA BA4 Summary

  • Vendor: CIMA
  • Product: BA4
  • Update on: Dec 16, 2025
  • Questions: 661
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