Ontario Barrister and Solicitor Practice Exam

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What would disqualify a director from continuing their role?

Being under 18 years of age
Bankruptcy/insolvency
Not being a shareholder
Not having a financial background

The correct answer is: Bankruptcy/insolvency

Being under 18 years of age would not necessarily disqualify a director from continuing their role, as many young individuals can still possess the necessary skills and experience for the position. Similarly, not being a shareholder does not necessarily disqualify a director, as they can still hold the responsibility and make decisions in the best interest of the company. While not having a financial background may be a disadvantage, it does not automatically disqualify a director from their role. Bankruptcy or insolvency, however, would disqualify a director as it signifies a lack of financial responsibility and trustworthiness, making them unfit to make financial decisions for the company.