SQE1 sample questions

Question 93

A private limited company has three directors. Two of the directors hold executive roles and are also shareholders. The third director is a non-executive director and has recently decided she wishes to resign as director.

The two executive directors have asked the third director to stay for at least a month in order to give them time to find a replacement. The third director insists she wants to leave straight away and submits written notice of her resignation to the company to take effect immediately.

The company has unamended model articles as set out in Schedule 1 to the Companies (Model Articles) Regulations 2008 (‘the Model Articles’).

Can the third director resign with immediate effect?

A. Yes, because a director can resign their office by written notice to the company to take effect at any time.

B. No, because the shareholders have not approved the third director’s resignation.

C. No, because a board resolution is needed to remove a director.

D. Yes, because the third director does not have to make arrangements for any shares in the company to be sold.

E. No, because the Model Articles require a director to give at least one month’s notice of resignation.


A - Yes, because a director can resign their office by written notice to the company to take effect at any time.

Candidates who answered correctly: 43%


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