1. Agency is the relationship which exists between the principal and the agent who has been authorised to act for him. With regard to agency:

(a) Discuss the authority that an agent has to act on behalf of the principal. [10 marks]

(b) Explain how an agency can be terminated. [10 marks]

2. A director of a company is a person who is appointed to manage the day-to-day business activities and finances.

Based on the Companies Act 2001, outline how a director can be appointed and the circumstances in which he ceases to hold office. [10 marks]