1. Which of the following statements about member voting and corporate control is not generally true?

a. In small companies with only a few members, all or most of the members participate directly or indirectly in the management of the company.

b. In larger unlisted companies, while not all members will have a direct involvement in management, members may still directly monitor and influence management because, for example, they are personally related to each other in some way, or live in the same region, or work in the same industry.

c. In large listed companies there are practical barriers to members joining together to mount an effective challenge to management.

d. Institutional investors in Australia are becoming increasingly passive and aloof.

2. Which of the following statements about the power of members to make structural or constitutional decisions is not true?

a. Changing the companys name requires a special resolution of members.

b. A proposal to modify the companys constitution may be initiated by the directors.

c. A special resolution to modify the companys constitution, which has been passed by the members, is not binding on directors if they disagree with the changes.

d. Changing the companys constitution requires a special resolution of members.