QUESTION SIX

Hickman v Kent or Rommy Marsh Sheep Breeders' Association $(1915)$

Hickman was a member of the association but it proposed to expel him. He brought an action

for an injunction to prevent the expulsion, but the articles provided for disputes between the

association and its members to be referred to arbitration. The court stayed the action so that

the matter could be referred to arbitration$-$the article was binding between the company and

its members.

$($a$)$ Advice Mr$.$ Hickman the protection that the memorandum and articles of association

offer on members based on the above case and citing other cases $(10$ marks$).$

$($b$)$ Outline the characteristics of a promissory note according to the company Act $(7$

marks$).$

$($c$)$ Using the Company Act cap $388,$ elaborate how the shareholders are different

from the companies they own $(3$ marks$)$

QUESION SEVEN

Chandololo A introduces Chamala B to Alan C as a partner in his business, Chamala B in fact

was not a partner but he did not deny the statement Alan $C$ advanced a loan to Chandololo $A.$

Chandololo A could not repay the loan. Can Alan C hold Chamala B responsible for the

repayment of the loan?

$($i$)$ Advice the partners $(15$ marks$)$

$($ii$)$ Discuss duties of the company secretary $(5$ marks$)$