Which of the following actions may result in disqualification of a director?

The disqualification of a director typically occurs as a result of serious breaches of legal or fiduciary responsibilities. One significant reason for disqualification is bankruptcy or insolvency. When a director becomes bankrupt or is unable to pay debts, it raises concerns about their ability to manage a company effectively and responsibly. This action reflects a profound risk to shareholders, creditors, and the company itself, as it casts doubt on the director’s capability to fulfill their duties.

Options such as failing to attend meetings, not complying with company policies, or taking an extended leave of absence may indicate issues with performance or engagement, but they do not inherently reflect the same level of legal implications as bankruptcy or insolvency. These actions may lead to internal consequences or debate regarding a director’s effectiveness or commitment, but they do not typically trigger automatic disqualification under corporate law. Thus, bankruptcy or insolvency stands out as a clear and legitimate ground for disqualification, addressing a serious risk associated with a director’s capacity to manage their responsibilities.