CAF-4 · Chapter 18 · Question 6 of 9
In a public unlisted company, a resolution is moved in a general meeting to remove an elected director, Farhan. The company has 10 million shares and 5 directors. In the last election, the candidate who secured the lowest number of votes to successfully become a director received 1.5 million votes. How many votes does Farhan need to survive the removal resolution?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A number of votes equal to or exceeding 1.5 million.
Explanation
An elected director cannot be removed if the votes cast against the removal resolution equal or exceed the minimum number of votes that were sufficient to elect a director in the immediately preceding election (which is 1.5 million here).
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