A provisional director is a court-appointed individual who assists in managing a company in situations where the regular directors are unable to reach a consensus. They serve as a temporary leader, making crucial decisions until the regular directors can resolve their differences.
A provisional director is someone chosen by a court to join the board of directors of a close corporation that is unable to make decisions due to a deadlock. A close corporation is a type of corporation with a limited number of shareholders and is not publicly traded. The provisional director is appointed to break the tie and make decisions on behalf of the corporation. For instance, if a close corporation has three directors and they cannot agree on a decision, a court may appoint a provisional director to break the tie and make the decision for the corporation. The provisional director is not a permanent member of the board and serves for a specific period of time until the deadlock is resolved.
A provisional director is an individual appointed by a court or a regulatory authority to temporarily manage the affairs of a company or organisation until a permanent director is appointed.
A provisional director is typically appointed in situations where there is a vacancy in the board of directors, such as when a director resigns, dies, or is removed from office.
The powers and responsibilities of a provisional director are usually limited to managing the day-to-day operations of the company, making necessary decisions, and ensuring the company’s continuity until a permanent director is appointed.
The duration of a provisional director’s service varies depending on the circumstances and the specific court order or regulatory authority’s decision. It can range from a few weeks to several months.
Yes, a provisional director can be removed if the court or regulatory authority determines that their appointment is no longer necessary or if a permanent director is appointed.
Yes, a provisional director can be held liable for any actions or decisions they make during their tenure if they act negligently, fraudulently, or in violation of their duties and responsibilities.
Yes, a provisional director is usually entitled to receive compensation for their services. The amount of compensation is determined by the court or regulatory authority overseeing the appointment.
In most cases, a provisional director has the authority to vote on board matters and participate in board meetings. However, their voting rights may be limited depending on the specific circumstances and the company’s bylaws.
Yes, a provisional director can be appointed in various types of organisations, including corporations, non-profit organisations, and government agencies, depending on the applicable laws and regulations.
Yes, a provisional director can be a shareholder or member of the organisation they are appointed to. However, their role as a provisional director should be separate from their role as a shareholder or member to avoid conflicts of interest.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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