21. 22. 23. 25. Despite the new statutory duties, directors still owe duciary duties to the company. Which of the following is that duciary duty to the company? A. To not accept bribes from third parties B. Not permitted to make any secret prots C. To avoid conicts of interest D. Not declare an interest in proposed transactions or arrangements A company member is also known as: A. stakeholders B. shareholders C. proxy D. member If a company makes prots, then those prots may be distributed to the members as a: A. dividend B. share C. cash D. nominal value Which of the following are the two types of liquidation? A. Compulsory and involuntary B. Voluntary and compulsory C. Voluntary and involuntary D. Compulsory and judicial A company is insolvent when: A. It Is unable to pay its debt B. It Is being sued C. its veil is lifted D. it is conducting illegal transaction 11. 12. 13. 14. 15. 16. 17. 18. 19. In relation to the duties and powers of directors, which of the following statements is INCORRECT? A. Fiduciary duties of directors include the duty to appoint the auditors B. Statutory duties of directors include the duty not to pay dividends out of capital C. Statutory duties of directors include the duty to keep proper nancial records D. Fiduciary duties of directors include the duty to act honestly and in good faith with a view to the best interest of the company What is the period of written notice for annual general meetings? A. 100 days B. 20days C. 12 days D. 21 days The process by which the life of a company is brought to an end and its property administered for the benet of its members and creditors is known as: A. liquidation B. termination C. dissolution D. resolution Ifthe directors of a company are persuaded to take the view that the company has no future and agree that it would be best if its existence comes to an end then a would be the best route to go. A. winding-up by the courts B. compulsory winding up C. voluntary winding up D. winding-up by the directors In winding up of a company, which of the following gives the CORRECT order of priority in repayment of sums owed? A. Common stock holders; preference stock holders; debenture holders B. Debenture holders; preference stock holders; common stock holders C. Preference stock holders; common stock holders; debenture holders D. Debenture holders; common stock holders; preference stock holders The right of an individual shareholder to appoint a proxy is: A. statutory B. obligatory C. at the board's discretion D. at the chairman's discretion Companies limited by guarantee were designed for which of the following? A. Private interest B. Public interest C. Shareholders interest D. Stakeholders interest One of the most obvious differences between the company and other forms of business organization is that the members of: A. both plivate and public companies have limited liability B. the company are not only liable for the amount unpaid on their shares C. the company are only liable for the debts of the company D. the company are only liable for the amount unpaid on their shares and for the debts of the company All of the following are duties of a company secretary EXQEI'I': A. corporate governance B. report and accounts C. share registration D. taking responsibility for own on-going training and continuous development; The principal constitutional document of a company that usually provides for rules that regulate the internal affairs of the company is known as: A. constitution of the company B. the Memorandum of Association C. the Articles of Association D. board meeting notes r... .u. r... . _._...i. .I..".. .n..... .. _.-u _.. . as. .-_ .. .I..'-.. .. AL. _.... .. 4} 10. Which of the following landmark cases established the principle of a company having its own separate legal entity? A. Macaura v Northern Assurance Ltd (1925) B. Tunstall v Steigman (1962) C. GiJford Motor Co Ltd v Home (1933) D. Salomon v Salomon & Co Ltd (1897) Which of the following must the registrar issue to the company before it can legally operate at that company? A. Incorporation insurance B. Incorporation documents C. Certicate of incorporation D. Certicate of trading Money raised by the issue of debenture is known as: A. debt financing B. equity C. capital D. sharecapital All of the following are types of capital EX PT: A. capital B. sharecapital C. loan capital D. prospectus AIAn is a document by which a company acknowledges that it is indebted to another. A. prospectus B. debenture C. memorandum D. article Debenture holders are to the company. A. creditors B. debtors C. owners D. members An insider is BET described as which of the following? A. The director of a company B. A shareholder in a company C. An individual who has information and has come from an external source D. An individual who has inside information and has come from an inside source Management of a company is usually entrusted to a small group of persons called: A. secretaries B. managers C. directors D. accountants In relation to company directors, which of the following is IN RRE T'! A. A private company must have at least one director B. A private company's sole director can also be the company secretary C. A public company must have at least three directors D. At least two of a public company's directors must be non-executive directors. Which of the following is NOT a ground for compulsory winding up of a company? A. The company is unable to pay its debts B. Default has been made in delivering the stamtory report to the Registrar or in holding the statutory meeting C. The company does NOT commence its business within one year of incorporation or suspends its business for one year D. If the company resolves by extraordinary resolution to the effect that it cannot by reason of its liabilities continue its business, and that is advisable to wind up