The board must then call a meeting of directors to determine the matter (the director concerned may, of course, not vote on the matter). It is interesting that there is no specific protection in section 71 against vexatious or frivolous allegations made by a shareholder. The board must, regardless of the merit in the shareholder’s allegation, at the very least convene a meeting to determine the matter.
Looks like government’s new tactic to perform cou-de-etats on white-owned businesses – just oust the director and carry on! Can you imagine private sector devolving into the shambles government has already reduced the public sector to?
- Director primacy in 5 minutes worth of bullet points (professorbainbridge.com)
- What All Boards Must Ask Their CEOs (blogs.hbr.org)