On 24 February 2006 Mr Hassan was appointed by the board of directors of XXL Ltd (a listed brokerage company) as the company’s chief executive for a period of two years. Thereafter, the stock exchange boom occurred and Mrs Hassan also set up a brokerage company. This action on part of Mrs Hassan infuriated the board of directors of XXL Ltd and they passed a resolution by a three-fourths majority removing Mr Hassan from the office of the chief executive. Mr Hassan has threatened to take XXL Ltd to court for removing him from office before the expiration of his two year period.Required:Explain to Mr Hassan whether the board’s act of removing him is valid or not. (10 marks)
