Which of the following is NOT a ground for disqualification under the CDDA?

To understand why being a member of the company is not a ground for disqualification under the Company Directors Disqualification Act (CDDA), it's essential to look at the purpose of the Act and the specific grounds for disqualification it outlines.

The CDDA provides specific circumstances under which individuals can be disqualified from acting as directors to protect creditors and uphold the integrity of corporate governance. Grounds for disqualification commonly include serious misconduct like breaches of competition law, serious criminal convictions, and conduct like wrongful trading that indicates a failure to uphold fiduciary duties and responsibilities to the company and its stakeholders.

Being a member of the company in itself does not imply any wrongdoing or misconduct that would justify disqualification. Membership in a company, through share ownership or as a member of a particular class of shareholders, is a normal part of corporate structure and does not inherently reflect the behavior or actions that would warrant disqualification. The law recognizes that individuals can hold dual roles – as members and directors – and simply being a member is not linked with actions that compromise the Director's duties.

Thus, the correct response highlights that mere membership does not constitute a misconduct issue under the CDDA, differentiating it clearly from the other options that involve actual breaches of law or misconduct.