Question
1) The duties of a promoter include: Select one: a. To act in the best interests of the proposed company; b. To not take an
1) The duties of a promoter include:
Select one:
a.
To act in the best interests of the proposed company;
b.
To not take an opportunity that belongs to the proposed company;
c.
To avoid a conflict of interest with the proposed company;
d.
To not make a secret profit;
e.
All of the above are correct.
2) Which of the following best describes a 'promoter'?
Select one:
a.
Those that go on to become directors of the company;
b.
Those that prepare the constitution for the company;
c.
Those that complete the application form for registration of the company;
d.
Answers (a), (b), (c) and (e) best describe a promoter;
e.
Those who actively engage in the formation of the company.
3) Before ABC Ltd is registered, Fred signs a contract on its behalf with an outsider. Which of the following is INCORRECT?
Select one:
a.
Fred must disclose any profit he makes from the contract;
b.
Fred must allow ABC Ltd to take up the contract;
c.
Fred can still be liable under the contract even if ABC Ltd takes it up;
d.
Fred can exclude himself from liability by agreement with the outsider;
e.
Fred can owe a fiduciary duty to ABC Ltd for things he did before it was registered.
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