QUESTION 18

1. At a Board meeting of Kindler Pty Ltd, the directors resolved to hold another Board meeting in a week's time to remove Tom as a director. Is this resolution procedurally flawed, if so, what is the primary reason?

   	A.	Yes - S. 203C makes it mandatory for directors to be removed by majority vote of members in company meeting, not directors in a directors meeting.
   	B.	Yes - S. 203D(2) states that at least 2 months' notice is required to be given to the company.
   	C.	Yes - S. 249H(3) requires 21 days' notice (or shorter if agreed by members) of a company meeting if the meeting is to consider and vote on a resolution to remove a director.
   	D.	Yes - A & C above.
   	E.	No - None of the above.

1 points

QUESTION 19

1. What is the difference between a proprietary company limited by shares and a public company limited by shares?

   1. Public companies must have a secretary.
   2. A proprietary company must have a registered office and open to the public during business hours.
   3. A proprietary company is permitted to engage in public fundraising.
   4. A public company must always include the words Proprietary Limited or the abbreviation Pty Ltd after its name.
   5. A public company can have a single director.

   		A only.
   		A and C only.
   		A, C, D and E only
   		C, D and E only.
   		They are all correct.

1 points

QUESTION 20

1. The scope of the board's power of management is determined by s. 198A. According to s. 198A:

   1. The directors are ultimately answerable to the shareholders.
   2. The business of the company is to be managed by or under the direction of the directors.
   3. The directors may exercise all the powers of the company except any powers that the Act or the companys constitution requires the company to exercise in general meeting.
   4. The directors are authorised to delegate their managerial functions to employees and other persons within the company.

   Which of these statements is correct?

   		B only.
   		D only.
   		A and D.
   		B and C.
   		B, C and D.