What must a director do immediately upon ceasing to qualify to act as a director?

When a director ceases to qualify to act as a director, the appropriate course of action is to file a resignation. This requirement arises because a director must meet certain eligibility criteria to serve on the board, such as being of a specific age, having the necessary legal capacity, or not being disqualified due to bankruptcy or criminal convictions.

By filing a resignation, the director formally communicates that they can no longer fulfill the responsibilities required of them in their role. This is crucial for maintaining the integrity of the board and ensuring that only qualified individuals are making decisions on behalf of the company. Additionally, the resignation allows the company to address the vacancy by finding a suitable replacement or making necessary adjustments in governance.

The other options do not fulfill the immediate obligation that a director has when they can no longer qualify. Calling a board meeting or notifying shareholders might occur later, but they do not address the immediate need for the director to resign. Seeking reappointment is infeasible if the individual no longer meets the qualifications to serve as a director, making it an impractical option in this context.