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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31300
Experience:  Over 5 years in practice
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Can a director of a company be approved or dismissed by an

Customer Question

Can a director of a company be approved or dismissed by an outside agent, a trust, like a charitable trust's approval or removal of another charity company's director? Must directors not be independently chosen by board or members?
We were forced to include the trust's right of approval and right of removal in our articles.
Was that demand legal, did the trustees impose an illegal demand on 'suitable' candidates for directorship??
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Is the trust a shareholder or member of the company? Kind regards AJ

Customer: replied 1 year ago.
We are charity companies with members having one share together.
In our MAAs we were forced to have a trust, created in 1883, deciding on the 'suitability' of directors in the registered companies, one being a church congregation, the other a more worldly organisation, but with Christian objectives as well, taking care and raise funds for the listed church building.
Are not directors of charity organisations (congregation not charity-registered but acts in a charitable way and has just under £5000 in income) obliged to act in an independent way and in the charity's best interest? As it is, if the directors act in an unsuitable way in the eyes of the Trust, they can oust us.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. This is a charities law question, I am afraid I will have to opt out for another expert. Another expert will respond to this question shortly. Kind regards AJ

Customer: replied 1 year ago.
Thank you. Await eagerlyyour colleague's answer