ICAEW ACA Certificate Level Law Practice Test 2026 - Free ACA Law Exam Practice Questions and Study Guide

The option indicating ‘Promotion’ as a reason for the removal of a director is correct because promotion generally implies the advancement of a director to a higher position rather than their removal from directorship. Removal typically involves an active decision to terminate the directorship due to various factors like inability to fulfill duties, moral failure, or legal issues, which are present in other options such as death, resignation, and disqualification.

Death leads to an automatic cessation of a director's duties, while resignation means a director actively chooses to leave their position. Disqualification arises from legal or regulatory breaches, resulting in a director being barred from serving further due to a failure to meet the necessary qualifications. In contrast, promotion would not necessitate a removal; instead, it would facilitate a change of role or responsibilities within the organization. Thus, 'promotion' does not align with the concept of removal, making it the clear choice in this context.