A promoter is forming a company and delivering documents to the Registrar of Companies.Which of the following would be included in the Memorandum of Association of thecompany?
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1 .In relation to the Memorandum of Association, which of the following is correct?
A It must always be signed by a minimum of two subscribers B It may include an objects clause, but this is not mandatory C It confirms that the company is unlimited or limited D It is a now a historical document that can never be changed
2 .Which of the following applies to entrenchment of articles of association?
A Any new entrenched provisions must be registered with the Registrar of Companies B It is no longer possible to create new entrenched articles of association C Entrenched articles of association can only be varied if a general meeting takesplace
3 .Which of the following statements relating to the memorandum of association of aprivate company limited by shares is correct?
A It may be altered by special resolution B It may be altered by a written resolution C It cannot be altered
4 .Which of the followings statements in relation to the articles of association is/arecorrect?(1) The articles cannot constitute a contract between the company and a third party.(2) Relevant terms of the articles may be implied into the contract.
A 1 only B 2 only C Both 1 and 2 D Neither 1 nore 2
5 .The articles of Dee Ltd, a property development company, states that the company has thepower to further its objects and that the directors have authority to borrow up to ￡200,000.The board has resolved to purchase a plot of land for ￡300,000. The Midwest Bank plc hasagreed to make a loan of ￡250,000 to Dee Ltd to acquire the land.Which of the following statements is correct?
A The loan is void as Dee Ltd has acted ultra vires B As the directors have exceeded their authority, the bank cannot enforce repaymentof the loan against Dee Ltd C As the directors have resolved to obtain the loan, the transaction is lawful D The loan is ultra vires and the directors will be person...
7 .The authorised share capital of Wye Ltd is ￡250,000 divided into 250,000 ordinary ￡1 shares.The market value of each share is ￡2. Angela and Brian are the only shareholders. Each hastaken 50,000 shares and each has, so far, paid ￡10,000.What is the issued share capital and paid-up share capital?
A Issued ￡250,000；Paid-up ￡100,000 B Issued ￡200,000；Paid-up ￡20,000 C Issued ￡100,000；Paid-up ￡20,000 D Issued ￡50,000；Paid-up ￡10,000
8 .A company cannot generally do which of the following?
A Invest in other companies unless authorised by the article of incorporation B Be funded by loans C Hold treasury shares
9 .Mr Wally buys a share in a company on 1 January.To whom does Mr Wally become contractually bound?
A The company only B The members as on 1 January C The company and the present members D The company and the members as on 1 January
10 .Which of the following statements is correct in relation to company shares?(1) All ordinary shares must be voting shares.(2) Preference shares never entitle the holder to a vote.(3) All preference shares carry cumulative rights.
A 1 only B 2 only C 3 only D None of the above
