Company Law – Page 6

MLP – JUL 2020 – L4 – Q1 – Legal Position of Bank in Company Diversification Loan

Advise Agyakrom Bank on its legal position regarding a negotiated loan to Ayensu Books plc for investing in a cinema and leisure complex, considering the company's objects clause, authorization requirements, and potential ultra vires issues.

Question

The main business of Ayensu Books plc is the running of a publishing company in Accra. The objects clause of the company’s regulations includes a power to borrow money as authorized by a general resolution of members. It further states that the directors may do all things that are conducive or incidental to the general business of the company and concludes with a paragraph stating that all the objects are to be regarded as distinct and separate.

The directors decided that the company should invest in a cinema and leisure complex on the Motorway Extension as a means of diversifying and offsetting its risks.

The finance director, acting on behalf of Ayensu Books, negotiated with the manager of Agyakrom Bank plc, the company’s bankers, for the borrowing of GH¢5 million to finance the development. The money is due to reach Addick’s Books bank account next month. In turn, the managing director contracted with Power Construction plc for the construction of the complex, which Power Construction has started to build, but for which it has yet to receive any payment.

Advise Agyakrom Bank on its legal position.

Answer

Find Related Questions by Tags, levels, etc.

Tags: borrowing authority, Company Law, Directors' Powers, Ghana Companies Act 2019, third party protection, ultra vires doctrine
Level: Level 4

Topic: Company formation, Nature of bodies corporate
Series: JULY 2020

PBL – APR 2023 – L1 – Q3 – Veil of Incorporation

Explain the meaning, benefits, and circumstances for lifting the corporate veil.

Question

a. What does the phrase the “veil of incorporation” (corporate veil) mean? (5 marks)

b. What is the benefit of having the “veil of incorporation”? (10 marks) c. When, (if at all) may the “veil” be removed? (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Corporate Veil, Incorporation, Lifting the Veil, Limited Liability
Level: Level 1

Topic: Contract Law
Series: APR 2023

PBL – APR 2016 – L1 – Q5 – Private vs Public Limited Liability Companies and Conversion

Differences between a private limited liability company and a public limited liability company, and the process for converting a private company to a public one.

Question

(a) State the difference between a Private Limited Liability Company and a Public Limited Liability Company (b) Briefly describe how a Private Limited Liability company may be converted into a Public Limited Liability Company.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Banking Customers, Borrowing Capacity, Company Law, Conversion Process, Corporate Governance, Differences, Ghana Companies Act, Private Limited Company, Public Limited Company
Level: Level 1

Topic: Contract Law
Series: APRIL 2016

FR – Nov 2023 – L2 – Q7a – Regulatory Framework for Financial Reporting

Discusses main sources of financial reporting regulations and reasons for regulatory practices.

Question

Within the context of financial reporting and regulatory frameworks:

i. Discuss the main sources of regulations. (3 Marks)
ii. Discuss TWO reasons why financial reporting practice should be regulated. (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Standards, Company Law, Financial Reporting, Regulations, Regulatory Rationale, Stock Exchange
Level: Level 2

Topic: Regulatory Framework for Financial Reporting

BL – Nov 2020 – L1 – SB – Q1d – Company Law

List powers exercised by the Annual General Meeting (AGM) of a company.

Question

One of the two organs of a company is the general meeting of members.

Required:
State FOUR powers of the Annual General Meeting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Annual General Meeting, Company Law, Corporate Powers, Shareholder Rights
Level: Level 1

Topic: Company Law
Series: NOV 2020

BL – Nov 2020 – L1 – SA – Q4 – Company Law

Objective question testing knowledge on instances where a court may disregard corporate personality.

Question

4. A situation in which the court would disregard the distinction between the personalities of a company and its members is
A. Subrogation
B. Alienation
C. Lifting the veil of incorporation
D. Disregarding the law
E. The rule in Foss vs. Habbotle

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Corporate Personality, Legal Principles, Veil of Incorporation
Level: Level 1

Topic: Company Law
Series: NOV 2020

BL – May 2012 – L1 – SB – Q6B – Company Law

Explain two fiduciary duties of a company director.

Question

Directors of companies are placed in special and unique positions. Their status imposes certain duties on them, and these include fiduciary duties.

Required:
Explain any TWO fiduciary duties of a company director.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Company Law, Directors' Duties
Level: Level 1

Topic: Company Law
Series: MAY 2012

BL – May 2012 – L1 – SB – Q6A – Company Law

Advise on the importance of filing annual returns for Xeyoze Limited.

Question

Xeyoze Limited was incorporated by the Corporate Affairs Commission on February 1, 2010. On March 1, 2011, the company bid for a contract to rehabilitate one of the nation’s oil refineries. This contract attracted scores of bidders because it was seen as a very lucrative one. A rival bidder objected to the competence of Xeyoze Limited to bid for the contract on the ground that an investigation at the Corporate Affairs Commission revealed that the company has not filed its annual returns.

Required: Advise Xeyoze Limited on the following:

(i) The importance of filing annual returns. (2 Marks)
(ii) The period within which the annual returns must be filed. (2 Marks)
(iii) The consequences of failure to file annual returns. (2 Marks)
(iv) Whether it is optional to file the annual returns or not (2 Marks)
(v) What is your advice if the contract was bid for on October 1, 2010? (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Company Law, Compliance
Level: Level 1

Topic: Company Law
Series: MAY 2012

BL – May 2012 – L1 – SB – Q1B – Company Law

Advise Halidu on transferring shares to raise money for school fees.

Question

Halidu holds one million shares in Realshares Nigeria Plc. Zaidi, his son, has just returned from the University of Basel because he could not pay school fees. Halidu is cash-strapped and wants to know whether he could transfer his shares to someone else to raise money to pay the fees.
Required: Advise Halidu, stating the statutory conditions by which he could transfer his shares. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Company Law, Share Transfer
Level: Level 1

Topic: Company Law
Series: MAY 2012

BL – May 2012 – L1 – SA – Q18 – Company Law

Identify the concept that allows a company to continue existing despite changes in ownership.

Question

The fact that a company cannot die connotes that it has:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Company Law, Perpetual Succession
Level: Level 1

Topic: Company Law
Series: MAY 2012

BL – Nov 2015 – L1 – SA – Q8 – Company Law

egal status of property transfers after compulsory winding-up.

Question

On commencement of compulsory winding-up of a company, any transfer of its property thereafter is
A. Valid
B. Invalid
C. Void
D. Voidable
E. Enforceable

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Multiple Choice, Transfer of Property, Winding-up
Level: Level 1

Topic: Company Law
Series: NOV 2015

BL – Nov 2015 – L1 – SA – Q7 – Company Law

Identifying the financial term for a company unable to pay debts.

Question

A company that is unable to pay its debts as and when due is said to be
A. Bankrupt
B. Bad
C. Illiquid
D. Insolvent
E. Undercapitalised

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Financial State, Multiple Choice, Tags: Insolvency
Level: Level 1

Topic: Company Law
Series: NOV 2015

BL – Nov 2015 – L1 – SA – Q6 – Company Law

Essential skills required for the exercise of auditor duties.

Question

The duties of an auditor are many and require the exercise of
A. Common Sense
B. Social Knowledge
C. Care and skill
D. Connection
E. Influence

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditors, Company Law, Duties, Multiple Choice
Level: Level 1

Topic: Company Law
Series: NOV 2015

BL – Nov 2015 – L1 – SA – Q5 – Company Law

Exercising shareholder rights to challenge company management.

Question

The right of a shareholder to challenge the management of a company may be exercised through
A. Refusal to pay salaries to members of the Management Board
B. Protests and placards at the venue of the Annual General Meeting
C. Withholding payment for the value of shares held in the company
D. Payment of taxes
E. Voting at a General Meeting

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Management, Multiple Choice, Shareholders
Level: Level 1

Topic: Company Law
Series: NOV 2014

BL – Nov 2015 – L1 – SA – Q4 – Company Law

Ways to terminate a company's life.

Question

ONE of the ways in which the life of a company may be terminated is by
A. Burning and shredding the books of the company
B. Changing the locker and keys on the main entrance doors
C. Putting security men on the premises
D. Voluntary winding-up by members
E. Putting notice of winding-up in the daily newspaper

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Multiple Choice, Termination, Winding-up
Level: Level 1

Topic: Company Law
Series: NOV 2015

BL – Nov 2015 – L1 – SA – Q3 – Company Law

Documents used for the incorporation of a company.

Question

Memorandum and Articles of Association are documents of
A. Incorporation of a company
B. Formation of a partnership agreement
C. Pre-incorporation contract
D. Sealing of all e-contracts
E. Conclusion of a contract under seal

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Incorporation, Legal Documents, Multiple Choice
Level: Level 1

Topic: Company Law
Series: NOV 2015

BL – May 2018 – L1 – SB – Q4a – Company Law

Discuss the liability of shareholders for transactions entered into prior to company incorporation.

Question

Beny Limited was incorporated six months ago. The company is in the real estate business. While preparing for incorporation, Ben and Nyom, who are now shareholders of the company, bought prime landed properties on behalf of the proposed company. They owe the vendors N100 million as the balance of the purchase price. The vendors are demanding payment.

Required:
(i) Advise Ben and Nyom on their status in the transaction. (4 Marks)
ii. Advise Beny Limited on the liability for the sum of N100 million

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Pre-incorporation Contract, Shareholder Liability
Level: Level 1

Topic: Company Law
Series: MAY 2018

BL – May 2018 – L1 – SB – Q3 – Company Law

Discuss the tests for insolvency, types of debentures, and implications of misuse of company resources by a secretary.

Question

a. There are various tests of determining if a company is insolvent.
Required:
List and explain briefly THREE of these tests specified by the Companies and Allied Matters Act (CAMA 1990). (6 Marks)

b. Company indebtedness could be by way of debentures.
Required:
State THREE types of debentures. (3 Marks)

c. Adex Plc employed ‘A’ as a Company Secretary. ‘A’ hired luxury cars from Bee Enterprises, giving the impression that they were for the use of Adex Plc, but he used the cars for his own purpose. Bee Enterprises has sued Adex Plc.
Required:
(i) Advise Adex Plc. (5 Marks)
(ii) Assuming that the Board of Directors of Adex Plc intends to remove ‘A’ as the Company Secretary, state THREE matters which the notice of removal must contain. (3 Marks)

d. By S.401 of CAMA, the legal way to terminate the life of a company is by winding up.
Required:
State THREE ways by which a company may be wound up. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Debentures, Insolvency
Level: Level 1

Topic: Company Law
Series: MAY 2018

BL – May 2018 – L1 – SB – Q2a – Company Law

State four reasons for which a company may refuse to register a share transfer.

Question

The shares of a Public Company are freely transferable.

Required:
State FOUR reasons for which a company may refuse to register a share transfer.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Share Transfer, Shareholders’ Rights
Level: Level 1

Topic: Company Law
Series: MAY 2018

BL – May 2018 – L1 – SA – Q6 – Company Law

Identify the condition when a company is unable to pay its debts.

Question

A company that is unable to pay its debts is
A. Fluid
B. Floating
C. Bankrupt
D. Insolvent
E. Distressed

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Insolvency
Level: Level 1

Topic: Company Law
Series: MAY 2018

Question Tag: Company Law

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

MLP – JUL 2020 – L4 – Q1 – Legal Position of Bank in Company Diversification Loan

Advise Agyakrom Bank on its legal position regarding a negotiated loan to Ayensu Books plc for investing in a cinema and leisure complex, considering the company's objects clause, authorization requirements, and potential ultra vires issues.

You're reporting an error for "MLP – JUL 2020 – L4 – Q1 – Legal Position of Bank in Company Diversification Loan"

PBL – APR 2023 – L1 – Q3 – Veil of Incorporation

Explain the meaning, benefits, and circumstances for lifting the corporate veil.

You're reporting an error for "PBL – APR 2023 – L1 – Q3 – Veil of Incorporation"

PBL – APR 2016 – L1 – Q5 – Private vs Public Limited Liability Companies and Conversion

Differences between a private limited liability company and a public limited liability company, and the process for converting a private company to a public one.

You're reporting an error for "PBL – APR 2016 – L1 – Q5 – Private vs Public Limited Liability Companies and Conversion"

FR – Nov 2023 – L2 – Q7a – Regulatory Framework for Financial Reporting

Discusses main sources of financial reporting regulations and reasons for regulatory practices.

You're reporting an error for "FR – Nov 2023 – L2 – Q7a – Regulatory Framework for Financial Reporting"

BL – Nov 2020 – L1 – SB – Q1d – Company Law

List powers exercised by the Annual General Meeting (AGM) of a company.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q1d – Company Law"

BL – Nov 2020 – L1 – SA – Q4 – Company Law

Objective question testing knowledge on instances where a court may disregard corporate personality.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q4 – Company Law"

BL – May 2012 – L1 – SB – Q6B – Company Law

Explain two fiduciary duties of a company director.

You're reporting an error for "BL – May 2012 – L1 – SB – Q6B – Company Law"

BL – May 2012 – L1 – SB – Q6A – Company Law

Advise on the importance of filing annual returns for Xeyoze Limited.

You're reporting an error for "BL – May 2012 – L1 – SB – Q6A – Company Law"

BL – May 2012 – L1 – SB – Q1B – Company Law

Advise Halidu on transferring shares to raise money for school fees.

You're reporting an error for "BL – May 2012 – L1 – SB – Q1B – Company Law"

BL – May 2012 – L1 – SA – Q18 – Company Law

Identify the concept that allows a company to continue existing despite changes in ownership.

You're reporting an error for "BL – May 2012 – L1 – SA – Q18 – Company Law"

BL – Nov 2015 – L1 – SA – Q8 – Company Law

egal status of property transfers after compulsory winding-up.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q8 – Company Law"

BL – Nov 2015 – L1 – SA – Q7 – Company Law

Identifying the financial term for a company unable to pay debts.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q7 – Company Law"

BL – Nov 2015 – L1 – SA – Q6 – Company Law

Essential skills required for the exercise of auditor duties.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q6 – Company Law"

BL – Nov 2015 – L1 – SA – Q5 – Company Law

Exercising shareholder rights to challenge company management.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q5 – Company Law"

BL – Nov 2015 – L1 – SA – Q4 – Company Law

Ways to terminate a company's life.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q4 – Company Law"

BL – Nov 2015 – L1 – SA – Q3 – Company Law

Documents used for the incorporation of a company.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q3 – Company Law"

BL – May 2018 – L1 – SB – Q4a – Company Law

Discuss the liability of shareholders for transactions entered into prior to company incorporation.

You're reporting an error for "BL – May 2018 – L1 – SB – Q4a – Company Law"

BL – May 2018 – L1 – SB – Q3 – Company Law

Discuss the tests for insolvency, types of debentures, and implications of misuse of company resources by a secretary.

You're reporting an error for "BL – May 2018 – L1 – SB – Q3 – Company Law"

BL – May 2018 – L1 – SB – Q2a – Company Law

State four reasons for which a company may refuse to register a share transfer.

You're reporting an error for "BL – May 2018 – L1 – SB – Q2a – Company Law"

BL – May 2018 – L1 – SA – Q6 – Company Law

Identify the condition when a company is unable to pay its debts.

You're reporting an error for "BL – May 2018 – L1 – SA – Q6 – Company Law"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form