The directors of Kante Bank Plc intend to please the shareholders of the

bank by ensuring that they distribute all the profits of the bank as dividends

without any fund conservation. They plan to do that, so that shareholders

may vote to retain them in office. The bank's paid up capital is less than its

reserve.

Required

As the Company Secretary of Kante Bank Plc, with knowledge of the Banks

and Other Financial Institutions Act, advise the bank on reserve funds.

(5 marks)

(b) Agents have some rights in law.

Required

State fiveof therights of an agent (5 marks)

(c) There are implied conditions in all contracts of sale of goods.

Required

Which conditions are implied where goods are sold by sample?

(3 marks)

(d) A hirer of goods has some remedies against the owner.

Required

State tworemedies of a hirer in a hire purchase contract (2 marks)

(e) A contract of insurance has elements of offer and acceptance.

Required

Explain briefly the making of offer and acceptance in insurance contract.

(5 marks)

Total 20 marks

Q2

The following clauses must be in the memorandum of association of a

Company except

A. The name of the Company

B. That the company is a private or public company

C. The name of the secretary and auditors

D. That the registered office of the company shall be situated in Nigeria

E. That the liability of members is limited by shares or guarantee or

unlimited

4. A director of a company must be at least of the age of

A. 18

B. 21

C. 25

D. 28

E. 35

5. Under the Companies and Allied Matters Act, the tests for insolvency do

not include

A. Inability of a company to pay a debt exceeding N2,000, three weeks

after demand

B. The existence of court process issued in respect of a judgment debt

C. A court ruling that the company is unable to pay its debts

D. The existence of company's liability in excess of its assets

E. Outstanding debts owed the company in excess of one billion naira

6. Which meeting must a public company hold within six months of

incorporation?

A. Commencement meeting

B. Promoters' meeting

C. Creditor's meeting

D. Statutory meeting

E. General Meeting

7. For how many years must a financial institution preserve the record of

customer's identification under the Money Laundering (Prohibition) Act?

A. 5 years

B. 8 years

C. 10 years

D. 12 years

E. 14 years

8. The physical element of an offence is known as

A. Intention

B. Actusreus

C. Strict liability

D. Mensrea

E. Obiter dicta

9. Which of the following is not an invitation to treat?

A. Display of goods in a shop window

B. Auction

C. Invitation to tender

D. Advertisement of goods in periodicals

E. Sale of necessaries

10. Winding up of a company may take any of the following forms except

A. Creditors' winding up

B. Members' winding up

C. Winding up by the court

D. Winding up subject to supervision by the court

E. Winding up at the complaint of the liquidator

11. The appointment of a director of a company at a general meeting is by

A. Extra-ordinary resolution

B. Ordinary resolution

C. Special resolution

D. Business resolution

E. Director's resolution

12. The Financial statements of a company shall include the following except

A. The balance sheet as at the last day of the year

B. Aprofit and loss account, or in the case of a company not trading for

profit, an income and expenditure account for the year

C. Notes on the account

D. Auditors' reports

C. Audit Committee's report