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Ndege to move out of Katara'shome.l(atarawas upset. He blamed Ndegefor unlawfully abandoning his job. In another case. Munta who was working under a contract of 2 years for Taka TakaLtd received a termination notice of 2 months.Munta immediately packed his belongings and left the company.Taka Taka Ltd has sued Munta for damages for unlawfully absconding from work. In yet another case, Simu Ltd is a private company limited by shares. dealing in communication systems and delivery of parcels. Recently. the company by a specialresolution of 5 members in an extraordinary general meeting made changes in its operations from analogue to digital. an improved technology.As a result. its memorandum of association was altered by adding another objective. Kamese,a shareholder. has threatened to sue for unlawful alteration of the company objectives. Required: Raise and resolve issues arising from the facts. (20 marks) Question 5 Every company is required by the Companies Act, 2012 to keep a register of itsdirectors and secretaries. Required: (a) Explain the general duties of a company secretary. (12 marks) (b) Describe the contents of a register of directors and secretaries. (8 marks) (Total 20 marks) Question 6 (a) Explain the meaning of the term 'agency'. (2 marks) (b) Explain the circumstances under which an agency relationship may beterminated. (10 marks) (c) Distinguish between criminal law and civil law. (8 marks) (Total 20 marks) Question 2 Two lawyers. Joseph Kavuyo, Robert Mapengoand engineer Abel Mulasi agreed to form a partnership. They intend to register it as KMM and Company Advocates.Their plan is to use Kavuyo and Mapengo's influence as lawyers to obtain engineering contracts which Mulasi would execute on behalf of the firm. Engineer Mulasiis also happy to work with lawyers because he knows that in case of any legal issues, he will be covered by his partners. 0n the other hand, Mbuzi. Kapalaga and Sekoko formed a company and registered it as Kambuselnvestments Limited [KIL). They were directors and the only shareholders of the company. In the company's memorandum of association there was a clause that the company's sole business was to buy hides and skins from Uganda and sell them to Dubai. KlL'sbusiness was performing well right from inception. When Mbuzi realised that there were some substantial funds on the company's account, he suggested to Kapalagathat they should divert some money to start trading in cars.This idea was appreciated by Kapalaga. He in turn rangSekoko to inform him about Mbuzi's idea.Sekokoalso agreed that they start dealing in cars. As a result of the two businesses. the company capital increased tremendously and the directors decided to declare dividends that would be distributed from profits and part of capital. They also bought properties for themselves. Thereafter, the company business started collapsing. The suppliers of hides and skins as well as those for carsstartedto demand for payment. 0n approaching the directors for payment they were advised to sue the company. Required: Raise issues and advise the parties involved. (20 marks) Question 3 Mpamba, Moni and the late Nsatu were prominent members of FalangaLtd.Nsatu, who was a widower, died 2 years ago. In his will, he appointed his sister,Weke to hold his shares in the company in trust for his 2 children. Peter and John, who were then 16 and 14 years old. respectively. The business was flourishing; therefore, the shareholders never querried the actions of management. Upon attaining 18 years. Peter demanded for an explanation as to why he and his brother were not benefitting from their late Question 4 (a) (i) Distinguish between multiplier and accelerator principles in economics. (2 marks) (ii) Given marginal propensity to consume of 0.8 and change in investment expenditure of Shs 50 million; calculate the multiplier magnitude and the change in the level of national income. (4 marks) (b) Discuss the factors which determine the level of investment expenditure in an economy. (7 marks) (c) Explain the negative effects of unemployment on the development of Uganda. (7 marks) (Total 20 marks) Question 5 (a) (i) Explain the reasons advanced by trade unions to demand for higher wages for their members. (6 marks) (ii) Discuss the problems facing trade unions in developing countries. (6 marks) (b) (i) Explain the factors that determine the exchange rate of a currency in the money market. (4marks) (ii) Discuss the problems that Uganda is likely to meet as a member of the East African community. (4 marks) (Total 20 marks) Question 6 (a) Define the term 'interest rate' and explain its determinants in an economy. (8 marks) (b) Account for the poor performance of capital markets in developing countries. (5 marks) (c) Explain the advantages of partial planning to Uganda. (7 marks) (Total 20 marks) SECTION B Attempt four of the ve questions in this section Question 2 (a) Account for the downward sloping nature of the demand curve. (4 marks) (b) (i) Distinguish between the costs and benefits of economic growth. (2 marks) (ii) Describe any three costs and three benefits of economic growth. (6 marks) (c) Explain the causes of poor performance of the agricultural sector in Uganda. (8 marks) (Total 20 marks) Question 3 (a) (i) Explain what is meant by the term 'mobility of a factor'. (1 mark) (ii) Discuss the factors that limit mobility of labour in Uganda. (7 marks) (b) With the aid of an illustration. explain how a monopolistically competitive firm determines price, output and profits in the long run. (6 marks) (c) (i) Distinguish between marginal rate of taxation and average rate of taxation. (2 marks) (ii) Babo's income increased from Shs 120,000 per month to Shs 200,000 per month and her tax liability increased from Shs 20.000 to Shs 60.000. Required: Determine the marginal rate of taxation for Babe. (4 marks) (Total 20 marks) father's shares.He also demanded for the transfer of his father's shares into his names. now that he was 18 years old. According to Peter. their aunt,Weke. was a married woman and so was not the right person to be appointed as trustee in respect of their shares. She was living with her husband in Kenya and for the last 14 months they had lost contact with her.So, according to Peter. their aunt could not continue as trustee. In response, the directors insisted that the boys' interests were well represented. Two months and a half after Peter's request. the directors sent a written notice to Peter, declining to transfer the late Nsatu's shares to him and gave no reason for the refusal. When Mpamba and Moni heard about Peter's complaints. they mobilised other members to demand for accountability. They soon found out that there was a lot of mismanagement.\" was discovered that despite the fact that the auditor had access to all relevant documents, the company's financial records were not updated. yet the audit gave a clean opinion. When queriedabout his role, the auditor insisted that he knew his responsibility very well. It has. however. transpired that the Registrar of companies has queried the company's financial records as well. The shareholders of the company and Peter are now seeking for your advice on what steps to take. Required: Raise the relevant issues and resolve them. (20 marks) Question 4 Mpaka. an employee of Ken Ltd joined the company on 1 January. 2014.0ne of the terms of his three year contract was that his contract was renewable for a further period of 3 years, at the Option of the employer.0n 10 February 2017. when the managing director, Katara, was perusing the employee's records, he discovered that Mpaka had worked for a week after the expiry of his contract. Katara immediately wrote a letter directingMpaka to leave the company premises within 2 hours, as his contract had expiredeaka reluctantly left the company premises, arguing that he was still an employee of the company. On 10 February 2017 when Katarareturned home after work. Ndege. his housekeeper requested for permission to go for a malaria blood checkup. The permission was granted. Ndege went but never returned. The following day. Ndege communicated to Katara on phone that he had left for good, as he could no longer withstand his (Katara's) mistreatment. He accused him of locking the gate and going with the keys to his office in order to frustrate any plans of