Question

The ________ is a person who has not been validly appointed or who is disqualified but who in effect occupies the position of, and acts as if he were, a director.

• A. Alternate director
• B. De facto director
• C. Executive director
• D. Non-executive director

Answer 1

Answer: (B)

De facto director

The de facto director is a person who has not been validly appointed or who is disqualified but who in effect occupies the position of, and acts as if he were, a director. Literally, a de facto director means 'a director by fact'.

A de facto director is not formally appointed but carries out all the duties and makes decisions as a director.