Ontario Solicitor Bar Exam Prep – Practice Test & Study Guide

A bankruptcy or insolvency status would disqualify NT from continuing as a director of P Inc because, under the Canada Business Corporations Act, individuals who are declared bankrupt or insolvent are not eligible to serve as directors of a corporation. This is aimed at ensuring that those in leadership roles have the financial integrity and capacity to make sound decisions for the company. Directors are expected to act in the best interests of the corporation, and financial instability could impair their ability to do so effectively.

In contrast, having less than three shares in the corporation does not necessarily disqualify someone from being a director, as there are no specific requirements regarding the number of shares held to serve in that capacity. Not being a resident of Ontario may also not disqualify NT, given the nature of the corporation and its bylaws; typically, corporations can have directors who reside outside of the province unless specific laws or bylaws impose such a requirement. Lastly, while failing to attend a minimum number of meetings could reflect poorly on a director's commitment, it does not automatically disqualify them from their position. Such attendance requirements, if they exist, are often set by the corporation’s internal policies and not by law.