Answer the following multiple choice questions in relation to Papua New guinea Business law and company acts

Module 12 Shareholders 27. Which of the following statements are 'rights and benefits' of being a shareholder? I. The right to receive any benefit under the Act or constitution. II. The exercise of pre-emptive rights to acquire shares. III. The entitlement of being able to call for a general meeting. IV. The entitlement of distribution. A. II, III, IV B. All of them C. I, III, IV D. I, II, IV 28. On what grounds can a company refuse a shareholder's request to inspect the records of the company? I. The request is frivolous or vexatious. II. Notice of the request was not given. III. The information is commercially sensitive. IV. The charge to receive the information was not paid. A. II, III, IV B. I, II, III C. I, III, IV D. All of the above 29. When will a shareholder's powers be exercised? I. By resolution in lieu of a meeting. II. At an annual meeting of shareholders. III. By notice to the company received seven days prior to a meeting. IV. At a special meeting of shareholders. A. II, IV B. All of the above C. I, III, IV D. I, II, IV Module 13 Distributions 30. In conducting the balance sheet test, reference must be made to: I. Contingent liabilities. II. The number of shares issued and authorized for issue by the company. III. The most recent financial statements of the company that comply with the Act. IV. The number of shareholders of the company. A. I, II B. I, III C. II, III D. I, IV 31. Which of the following is INCORRECT in relation to a company's purchase of its own shares? A. The Act specifically permits a company to purchase its own shares provided its Constitution allows it B. The purchase must be carried out within the provisions of the Act C. Shares which are repurchased are cancelled on acquisition D. The dissenting minority shareholders can request the company to purchase their shares Module 14 Amalgamations 32. The board is required to send a copy of the amalgamation proposal along with further information and explanation to all shareholders not less than __________ prior to the date the amalgamation is to take effect. A. 21 days B. 30 days C. 1 month D. 15 Business Days 33. When does an amalgamation become effective? A. When the shareholders have voted to approve the shareholding B. When the relevant amalgamation documents are filed with the Registrar of Companies and a certificate of amalgamation is issued C. When the amalgamating companies are removed from the register D. When the relevant amalgamation documents are filed with the Registrar of Companies 34. What must the Board of each amalgamating company resolve? A. That the amalgamation is in the best interests of the company and that the amalgamating company satisfies the Solvency test B. That the amalgamation is in the best interests of the company and that immediately after the amalgamation becomes effective, it is satisfied on reasonable grounds that the amalgamated company will satisfy the Solvency Test C. That the amalgamation is in the best interests of the directors and that immediately after the amalgamation becomes effective, it is satisfied on reasonable grounds that the amalgamated company will satisfy the Solvency Test D. That the amalgamation is in the best interests of the company and that immediately before the amalgamation becomes effective, it is satisfied on reasonable grounds that the amalgamated company will satisfy the Solvency Test Module 15 Compromises with Creditors 35. In a proposed compromise with creditors, how many required days of notice for the meeting be given to creditors? A. One month B. 21 days C. 10 working days D. 5 working days 36. Who is NOT allowed to propose a compromise with creditors? A. A receiver appointed in relation to substantially all the assets and undertakings B. A liquidator C. One of the Board of directors D. Any creditor or shareholder with the leave of the Court; if they have reason to believe that the company will be unable to pay its debts as they fall due 37. A person who proposes a compromise with creditors is known as a...? A. Proponent B. Proposer C. Pronator D. Initiator 38. Which of the following statements indicates compromises with creditors? I. A list of creditors who would be affected by the compromise. II. A list of debtors who would be affected by the compromise. III. The amount owing or estimated to be owing. IV. The number of votes entitled to be casted on a resolution approving the compromise. V. A list of shareholders of the company and the shares held by each. A. III, IV, V B. I, III, IV C. I, III, V D. II, III, V Module 16 Receivers 39. What is the transition period required by a company under the 1997 Companies Act, that deemed to be registered, after its official management has ceased? A. 1 month B. 3 months C. 6 months D. 12 months 40. Which of the following statements is INCORRECT? A. A supplier of essential services cannot refuse to supply the service to a receiver or to the owner of a property which is in receivership because of any debt which is owing at the date of the receiver's appointment B. The personal liability of a receiver may not be reduced where the liability was incurred merely because of a defect in the appointment of the receiver and the receiver acted honestly and reasonably C. Essential services include the supply of electricity, the supply of water and the supply of telecommunication services D. The company and every person in whose interest a receiver was appointed are entitled to a copy of a receivers' report 41. Which of the following statements are CORRECT in terms of the end of a receivership? I. When the Court orders the end of a receivership, the Court cannot prohibit a person in whose interest the receiver was appointed from taking possession or assuming control of the property in the receivership. II. The Court has the power to terminate or limit a receivership. III. The termination or limiting of a receivership can be made on the application of the company or a liquidator of the company. IV. When the Court orders the end of a receivership, such an order affects any security or charge over the property in respect of which the order was made. A. I, II B. II, III C. II, IV D. I, IV 42. What is TRUE in relation to the duties of a receiver? I. Receivers must exercise their powers in good faith. II. Receivers must keep money relating to the receivership separate from any other money received during the receivership which does not relate to the receivership. III. Receivers must notify the Court of any breach of the Act by the company or any other person. IV. Receivers must exercise their powers in a manner believed to be on reasonable grounds and to be in the best interest of the person for whom the receiver has been appointed. V. Receivers must appoint an independent accountant to keep accounting records that record receipts, expenditure and other transaction which relate to the receivership property. A. III, IV, V B. II, III, V C. I, III, IV D. I, II, IV Module 17 Liquidations 43. What is an "uncommercial transaction"? A. A transaction which has taken place within a year of the commencement of the liquidation and when the transaction took place the company was unable to pay its debts or, was engaged in or about to engage in business for which its financial resources were unreasonably small or incurred an obligation knowing that the company would not be able to perform the obligation when required B. A transaction which has taken place within a year prior to the commencement of the liquidation and when the transaction took place the company was unable to pay its debts or, was engaged in or about to engage in business for which its financial resources were unreasonably small or incurred an obligation knowing that the company would not be able to perform the obligation when required C. A transaction which has taken place within a year of the commencement of the liquidation or when the transaction took place the company was unable to pay its debts or, was engaged in or about to engage in business for which its financial resources were unreasonably small or incurred an obligation knowing that the company would not be able to perform the obligation when required D. A transaction which has taken place within a month of the commencement of the liquidation and when the transaction took place the company was unable to pay its debts or, was engaged in or about to engage in business for which its financial resources were unreasonably small or incurred an obligation knowing that the company would not be able to perform the obligation when required 44. A transaction would be considered uncommercial if a reasonable person in the company's circumstances would not have entered into the transaction after having regard to: A. The respective benefits to other parties to the transaction of entering into the transaction B. The benefits to the company of entering into the transaction C. The detriment to the company of entering into the transaction D. All of the above 45. The Court will appoint a liquidator when it is satisfied that: I. The company does not meet the essential requirements to be a company. II. The company is unable to collect from its debtors as they become due in the ordinary course of business. III. It is just and equitable that the company be put into liquidation. IV. The company or the board has persistently or seriously failed to comply with the Act. V. The company's annual audit opinion has been qualified for three consecutive years. A. II, II, IV B. I, II, III C. I, III, IV D. I, II, IV 46. Liquidators are appointed by: A. The courts B. The shareholders C. The board of directors D. All of the above Module 18 Miscellaneous Matters 47. Which of the following is correct in respect of company registers? A. The registers may be inspected during the normal business hours of the Companies' Office, by persons that have been granted approval by that company, and a minimal fee may be required B. The registers may be inspected by any person during the normal business hours of the Companies' Office, free of charge C. The registers may be inspected by any person during the normal business hours of the Companies' Office, and a minimal fee may be required D. The registers are confidential and may not be inspected by any person unless a court order has been granted to permit such inspection, during the normal business hours of the Companies' Office, and a minimal fee may be required48. What is the fine imposed on Directors for non-completion of financial statements of a reporting entity within the specified period, failure to have an audit where required or to lodge audited financial statements with the annual return? A. K 5,000 B. K 10,000 C. K100,000 D. K200,000 49. What is the fine imposed on a Company for failing to maintain the share register? A. K 5,000 B. K 10,000 C. K100,000 D. K200,000 50. What is the maximum fine imposed on any person who fails to produce documents requested by the Registrar? A. K 5,000 B. K 10,000 C. K100,000 D. K50,000