Why is corporate governance important in modern Company Law? Choose the MOST CORRECT statement. Select one: O a. Good corporate governance holds the board of directors accountable to the shareholders and reduces the possibility of fraud and mismanagement. O b. Companies are an integral part of modern society and if ethical behaviour and personal integrity is exercised by the board of directors this will improve the quality of modern society O c. Good corporate governance will increase investor confidence in the company and increase the profitability of the company O d. Corporate governance is concerned with structures and processes associated with management, decision making and control of organisations, and ensures appropriate conduct by directors and managers. Question 5 Not yet answered Marked out of 2 Mrs Muronga is a director of Earthworks (Pty) Ltd, a company that manufactures and sells pottery. She prefers working for herself and intends resigning from the company to start a similar business. She is unsure whether she may make use of the company's client list compiled over a number of years, to inform potential clients of her new business. Advise Mrs Muronga whether she can do this. Select one: O a. She may, because a director's fiduciary obligation towards the company arises by virtue of his/her occupation of the office of director, and as such does not continue after resignation O b. She may use the information, because she will just be informing people about her new business and they can decide for themselves whether they want to support her or not. O c. She may not because where a director acquired confidential information while owing a fiduciary duty to the company, the director can be held to account even after resignation Od She may not, because using confidential information for her own benefit will exceed the limitations of her power. Question 7 Not yet answered In terms of the Companies Act companies are deemed to have the capacity and powers of a natural person of full capacity in so far as a juristic person is capable of exercising those powers. This means that: Marked out of 2 Select one: O a. A company is incapable of performing acts that are regarded as inherently human O b. A company does not exist as an entity in a physical sense and must act through its organs or agents O c. A company a company has unlimited capacity to take part in commercial activities Od. All of the above