Which of the following applies to entrenchment of articles of association?
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1 .A private company wishes to alter its articles of association.What resolution must be passed by the shareholders?
A A special resolution B An ordinary resolution C An extraordinary resolution
2 .Which of the following statements relating to articles of association is/are correct?(1) The articles of association of a company limited by shares contain the internalregulations of the company.(2) The articles of association form a contract between the shareholders and thecompany.
A 1 only B 2 only C Both 1 and 2 D Neither 1 nor 2
3 .Which of the following clauses in the articles of association of Dee Ltd would NOT beenforceable against the company as a breach of contract?
A Shareholders shall be paid dividends in cash B All shareholders are entitled to attend and vote at general meetings of the company C Tom (a shareholder) shall be the company’s managing director for life
4 .In the context of the articles of association which of the following statements is correct?(1) They form a contract between the shareholders and the board of directors.(2) They form a contract between the shareholders and the company.(3) They form a contract between each shareholder and the other shareholders.(4) They are only contractual in respect of ordinary membership rights.
A 1, 2 and 3 only B 1, 2 and 4 only C 1, 3 and 4 only D 2, 3 and 4 only
5 .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an objects clause, but this is not mandatory C It confirms that the company is unlimited or limited D It is a now a historical document that can never be changed
7 .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
8 .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
9 .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...
10 .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
