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1.In 2008 Ger was disqualified from acting as a company director for a period of 10 years under the Company
Directors Disqualification Act 1986 for engaging in fraudulent trading.
However, he decided to continue to pursue his fraudulent business and, in order to avoid the consequences of the disqualification order, he arranged for his accountant Kim to run the business on his instructions.
Although Kim took no shares in the company, and was never officially appointed as a director, he nonetheless assumed the title of managing director.
Required
(a) Identify which of the following categories of directors apply to Ger and Kim:
(i) De facto
(ii) De jure
(iii) Non-executive
(iv) Shadow (4 marks)
(b) State the working relationship and duties of non-executive directors (2 marks)
(Total = 6 marks)
