On what basis is a company liable for contracts entered into on its behalf by the boardof directors?
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1 .In relation to the Annual General Meeting of a public company which of the followingstatements is correct?
A The first AGM must be held within 15 months of its incorporation B The gap between AGMs must not exceed 13 months C At least 21 days’ notice must always be given to the members D The agenda is set by the directors
2 .Which of the following is required if the members of a company wish to remove adirector?
A Ordinary resolution with ordinary notice B Ordinary resolution with special notice C Special resolution with ordinary notice
3 .For a public company, what is the minimum percentage of voting rights that must beheld by a member for that member to request a resolution on the agenda for the nextAnnual General Meeting?
A 3% B 5% C No minimum percentage required
4 .Which of the following statements about a company’s borrowing powers are correct?(1) A board resolution to borrow money is binding on the company.(2) A decision by the managing director to borrow money is binding on the company.(3) The shareholders may veto any decision to borrow money by passing an ordinaryresolution.
A 1 only B 1 and 2 only C 1 and 3 only D 2 and 3 only
5 .What is the required days of notice for a general shareholder meeting that is not anannual meeting?
A 14 days B 21 days C None
7 .How many members are required to demand a poll at a general meeting under theModel Articles?
A One B Two C Five
8 .Which of the following are correct?(1) The first directors are appointed by a resolution of the members at the company’sfirst Annual General Meeting.(2) A director is regarded in law as a person who occupies the position of director bywhatever title he is given.(3) A shadow director is a person in accordance with whose directions or instructionsthe directors of the company are accustomed to act.
A 1 and 2 only B 1 and 3 only C 2 and 3 only D All three statements
9 .Sarah, a member of XYZ plc, wishes to nominate Janis to attend the Annual General Meetingof XYZ plc as her proxy.Which of the following statements is correct?
A Janis must also be a member of XYZ plc B Sarah can only nominate a proxy if the articles of association allow this C Sarah will not be able to control how Janis votes D Only the chairman of the meeting may act as Sarah’s proxy
10 .Which of the following is correct?(1) Directors may vote themselves such salary payments as they think fit, irrespectiveof anything in the company’s articles of association.(2) Directors are only entitled to be paid for their services if the constitution of thecompany so provides.(3) All directors must be paid a salary.
A 1 only B 2 only C 1 and 2 only D 3 only
