exams question

Question 15 The power to manage a company is initially vested in whom? a) The directors b) The majority shareholders c) The members d) The persons who provide the most capital Question 16 Which ONE of the following is NOT a general duty of company directors? a) To exercise independent judgment. b) To obtain member approval for substantial property transactions. c) To avoid conflicts of interest. d) To act in accordance with the company's constitution. Question 17 Mike is a director of Y&K pic. While acting for the company, he becomes aware of a business opportunity that the company is unable to exploit. He takes advantage of this opportunity himself and makes a considerable profit. Can Mike keep the profit made? a) Yes, providing that the constitution allow the directors to authorize the transaction, and they do so prior to Mike entering into it. b) No. Directors are never allowed to keep profits made from such transactions. c) Yes, providing that the other directors gave prior authorization to Mike entering into the transaction. d) Yes, providing that Mike obtains the consent of the company in general meeting. Question 18 What is an 'ordinary resolution? a) A resolution that is passed by 85 per cent or more of the members. b) A resolution that is passed by a majority of not less than 75 percent. c) A resolution that is passed if 100 per cent of the members agree. d) A resolution that is passed by a simple majority