Which of the following can lead to disqualification of a director?

Engaging in insider dealing is a serious breach of legal and ethical standards that can lead to the disqualification of a director. Insider dealing occurs when a director uses confidential information about the company, which is not available to the public, to make trades or investment decisions. This undermines the integrity of the financial markets and erodes public trust in corporate governance.

Regulatory bodies take such actions very seriously, as they can distort market prices and compromise the level playing field that is essential for fair competition. Directors are expected to act in the best interest of their stakeholders, and engaging in insider dealing violates the fiduciary duties they owe to the company, shareholders, and other stakeholders. As a result, the law provides for disqualification as a measure to ensure accountability and to preserve the trust in corporate leadership.

The other activities listed, such as making strategic investments, participating in regular audits, and encouraging employee training, generally align with the responsibilities of a director and do not pose the same legal and ethical threats as insider dealing does.