Mr Wally buys a share in a company on 1 January.To whom does Mr Wally become contractually bound?
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1 .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
2 .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...
3 .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?
A The objects clause B A statement of initial capital C Subscribers’ declaration
4 .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
5 .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
7 .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
8 .To which of the following does the term “subscribers” refer?
A The founding members of a company B The ordinary shareholders of a company C All shareholders of a company
9 .Which of the following describes a person who invests in both the shares and debenturesof a company?
A A member B A creditor C A member and a creditor
10 .Which of the following statements concerning shares in a company are correct?(1) Shares are personal property of a shareholder.(2) A shareholder may hold a fraction of a share.(3) Two or more people may hold the same share.
A 1 and 2 only B 1 and 3 only C 2 and 3 only D All of the above
