The statutory model articles provide that votes may be first counted on a show of hands.Who can demand a ballot?(1) The Chairman of the board(2) Any director(3) Any two or more members
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1 .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
2 .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
3 .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
4 .What does issued share capital represent?
A The extent of the company’s funding by its members B The market value of the company’s net assets C The amount of cash injected by the members
5 .What type of share may give the right to cumulative dividends?
A Ordinary share B Preference share C Treasury share
7 .Which of the following statements is correct in relation to an issue of new shares?(1) All new shares issued by a private company must be offered to the existingmembers first.(2) All shares issued for cash must be offered to the existing members first.
A 1 only B 2 only C Neither 1 nor 2 D Both 1 and 2
8 .Which of the following statements is/are correct?(1) Subscriber’s shares in a public company do not have to be paid in cash.(2) Neither a private company nor a public company may issue shares at a discountunless the balance remains payable by the shareholder.
A 1 only B 2 only C Both 1 and 2 D Neither 1 nor 2
9 .Which ONE of the following is correct in relation to a company issuing shares?
A Any limited company may issue shares by way of a public offer B The directors are responsible for alloting shares C The increase in authorised capital must be confirmed by the court
10 .The directors of Pen Ltd are proposing a capital reduction. They have made a statutorydeclaration and called a general meeting of members.What kind of resolution is required to approve the capital reduction?
A Ordinary resolution B Ordinary resolution with special notice C Extraordinary resolution D Special resolution
