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Muhjid, Salomon and Fang Are the Only Directors of SleepWell

Question 11

Multiple Choice

Muhjid, Salomon and Fang are the only directors of SleepWell Pty Ltd, a company that sells mattresses. Sleepwell does not have a constitution. Muhjid wants to remove Fang from the board as he believes Fang has stolen money from the company's bank account. Which of the following is correct:


A) Fang could only be removed by a members' special resolution;
B) Fang would be automatically disqualified as he has committed a serious criminal act;
C) The company needs to give Fang two months' notice before removing him;
D) Fang can be removed by the company passing an ordinary resolution;
E) As a director, Fang would be able to enforce the constitution and thereby maintain his place on the board.

Correct Answer:

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