mcqs

question 1. What is the requirement that a company hold meetings? Which of the following is correct?(1 mark)

Select one:

a.Public companies and large proprietary companies are required to hold annual general meetings each year.

b.A company needs only to hold a meeting where a special resolution is to be put to the members.

c.Only public companies must hold an annual general meeting, however all other companies may need to hold a meeting if passing a special resolution or where the members demand that meeting.

d.No company needs to hold any meeting, unless of course ASIC determines that the company must hold a meeting for some emergency purposes.

question 2.Who may call and Extraordinary General Meeting? Which of the following is correct?(1 mark)

Select one:

a.A member of a company may call a meeting by simply giving notice of some serious issue to the directors, who are then required to immediately call an extraordinary meeting.

b.Only the company's directors can call an extraordinary meeting.

c.Extraordinary meetings can only be called with at least 6 months' notice.

d.Both the company directors and the members of a company may call an extraordinary meeting.

question 3

A member will cease to be a member under the following circumstances. Which of the following is incorrect?(1 mark)

Select one:

a.Where the member's shares are seized by a creditor or through bankruptcy.

b.If the member sells or transfers their shares and the new member's name is entered on that register.

c.When the member hands their share certificate to someone else.

d.When their name is removed from the share register.

question 4

What best describes a statutory injunction? Indicate the correct response.(1 mark)

Select one:

a.A statutory injunction is an order granted by a court under s 1324 which is a stop order against a party engaging in conduct that is in breach of the Corporations Act. This might also include within the injunction an order to make someone actually do something.

b.A statutory injunction is an order by a court which is relatively easy to obtain if a party is a member of the company; usually a court will grant an order for a substantial period of time while the company proves that it has in fact acted appropriately.

c.A statutory injunction is a court order which can only be used to stop something occurring; it is not possible to grant an injunction before the wrongful action occurs.

d.An application for a statutory injunction is an application to a court for a direction from a court; however, it is only available to members.

question 5

What is an action for oppression? Which of the following is correct?(1 mark)

Select one:

a.Under s 232 a member of the company can bring an action claiming that majority controllers of the company are acting oppressively. Under s 233 there are a number of remedies available to a court in response to a claim of oppression.

b.An act of oppression is an action by directors which shareholders find unfavourable. A court should immediately wind up a company if the directors have acted unfairly.

c.An action for oppression is the description of actions by officers in a company who keep secret vital information about the company from the members. The members can force disclosure of this with a court application.

d.The majority members of a company can bring an action for oppression where the minority keep objecting to various resolutions they put to meetings. The court can order that the minority is unable to block company business or create disturbances at company meetings.