- 10 Marks
BCL – Nov 2024 – L1 – Q3b – Financial Assistance for Share Purchase
Conditions under which a company may provide financial assistance for share purchase.
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Question Tag: Corporate Law
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- 1 Marks
BL – May 2013 – L1 – SA – Q17 – Company Law
This question tests the knowledge of the number of modes of winding up a company.
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- Tags: Company Liquidation, Corporate Law, Winding-up
- Level: Level 1
- Topic: Company Law
- Series: MAY 2013
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- 1 Marks
BL – May 2018 – L1 – SA – Q20 – Company Law
Identify the situation where a company cannot acquire its own shares
Question
A company may acquire its own shares in the following circumstances EXCEPT to:
A. Eliminate fractional shares
B. Satisfy the claim of a dissenting shareholder
C. Ensure that the company’s share price does not fall on the stock exchange
D. Comply with a court order
E. Settle or compromise a debt or claim asserted by or against the company
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- Tags: Company Shares, Corporate Law, Stock Exchange
- Level: Level 1
- Topic: Company Law
- Series: MAY 2018
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- 1 Marks
BL – May 2022 – L1 – SA – Q11 – Company Law
Determine when a person to whom shares are transmitted is entitled to dividends.
Question
A person to whom shares have been transmitted is entitled to dividends on the shares only after
A. Registration as a member of the company
B. Death of the original shareholder
C. Proving of deceased shareholder’s Will
D. Applying for the dividends
E. Notifying the company of deceased’s death
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- 5 Marks
BL – Nov 2023 – L1 – SB – Q5d – Company Law
Discusses the types of insolvency practitioners and the qualifications required to practice in Nigeria.
Question
Corporate insolvency occurs when a company is unable to meet its financial obligations.
Required:
i. State TWO insolvency practitioners. (2 Marks)
ii. State THREE qualifications that an insolvency practitioner must possess. (3 Marks)
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- Tags: Corporate Law, Insolvency, Liquidation, Practitioners
- Level: Level 1
- Topic: Company Law
- Series: NOV 2023
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- 1 Marks
BL – Nov 2023 – L1 – SA – Q9 – Business Ethics and Corporate Governance
This question asks who secured creditors have the right to appoint when a company is in financial difficulty.
Question
As an alternative to liquidation, where a company is in financial difficulty the secured creditors have a right to appoint a
A. Director to manage the assets
B. Banker to manage the assets
C. Chairman to manage the assets
D. Receiver/manager to manage the assets
E. Stockbroker to manage the assets
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- Tags: Corporate Law, Insolvency, Receivership
- Level: Level 1
- Topic: Business Ethics and Corporate Governance
- Series: NOV 2023
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- 1 Marks
BL – Nov 2023 – L1 – SA – Q8 – Company Law
This question asks about the binding nature of pre-incorporation contracts.
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- Tags: Company Formation, Corporate Law, Pre-Incorporation Contracts
- Level: Level 1
- Topic: Company Law
- Series: NOV 2023
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- 1 Marks
BL – Nov 2023 – L1 – SA – Q1 – Business Ethics and Corporate Governance
This question asks about the duty of a receiver in a corporate setting.
Question
Which of the following is NOT a duty of a receiver in a company?
A. Taking possession of company property
B. Managing company business
C. Discharging all outgoings
D. Protecting company properties
E. Realising securities for the benefit of shareholders
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- Tags: Business Law, Company Management, Corporate Law, Receivership
- Level: Level 1
- Topic: Business Ethics and Corporate Governance
- Series: NOV 2023
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- 1 Marks
FA – Nov 2014 – L1 – SA – Q14 – Regulatory Environment of Accounting
Identifying the content of a memorandum of association in a limited liability company.
Question
Which of the following is ONE of the contents of the memorandum of association of a limited liability company?
A. The transfer and transmission of shares
B. The voting rights of members
C. The borrowing powers of the company
D. The object clause of the company
E. The appointment and powers of Managing Director
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- Tags: Corporate Law, Memorandum of Association, Regulatory Compliance
- Level: Level 1
- Topic: Regulatory Environment of Accounting
- Series: NOV 2014
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- 1 Marks
BL – May 2023 – L1 – SA – Q18 – Business Ethics and Corporate Governance
Identify the penalty for corporate bodies obstructing authorized officers under the Money Laundering Act.
Question
Under the Money Laundering (Prevention and Prohibition) Act, 2022 which of the following is the punishment against corporate bodies that obstruct authorized officers of the Agency from doing their lawful duties?
A. ₦250,000 fine
B. ₦500,000 fine
C. ₦1 million fine
D. ₦5 million fine
E. ₦10 million fine
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- Tags: Corporate Law, Legal Penalties, Money laundering
- Level: Level 1
- Topic: Business Ethics and Corporate Governance
- Series: MAY 2023
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- 8 Marks
May 2024 – L1 – SB – Q4b – Company Law
This question addresses the steps and reasons for rejecting a share transfer in a public company.
Question
b. Gabriel is a shareholder in Zee Zee Company Plc. He desires to transfer his shares to his son who has just graduated from the Nigerian Law School as a sign of his appreciation of his excellent performance in the Bar Final examination.
Required:
i. Advise Gabriel on his competence to transfer his shares to his son. (2 Marks)
ii. Which legal step must Gabriel take to transfer the shares? (2 Marks)
iii. State TWO reasons for which Zee Zee Company Plc may reject the transfer of Gabriel’s shares to his son. (4 Marks)
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- Tags: Corporate Law, Public Company, Share Transfer, Shareholder, Transfer Rejection
- Level: Level 1
- Topic: Company Law
- Series: MAY 2024
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- 1 Marks
BL – May 2024 – L1 – SA – Q6 – Company Law
Identify the two types of insolvency recognized by law.
Question
The two types of insolvency recognized by the law are
A. Directors’ and shareholders’ insolvency
B. Members and company insolvency
C. CAC and company insolvency
D. Corporate and personal insolvency
E. Receiver and shareholders insolvency
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- Tags: Company Law, Corporate Law, Insolvency, Personal Insolvency
- Level: Level 1
- Topic: Company Law
- Series: MAY 2024
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- 1 Marks
BL – May 2024 – L1 – SA – Q3 – Company Law
Eligibility for appointment as an administrator of a company.
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- Tags: Company Administration, Corporate Law, Insolvency
- Level: Level 1
- Topic: Company Law
- Series: MAY 2024
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- 10 Marks
BCL – July 2023 – L1 – Q5c – Legal Implications Relating to Companies in Difficulty or in Crisis
Explain the consequences of winding-up a company by private liquidation.
Question
Three brothers Aba, Bawa, and Caroline registered a company (ABC Ltd) to supply cocoa products. The most influential member of the Board, Caroline, died five years into the life of the business. The surviving two directors decided to pass a special resolution by private liquidation to wind-up the business.
Required:
Explain FIVE (5) consequences of winding-up ABC Ltd by private liquidation. (10 marks)
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- 10 Marks
BCL – Dec2022 – Q5a – Company directors and other officers
Explain class rights, circumstances for their variation, and advice on the cancellation of special rights.
Question
Kofi Manu set up a company and had a scholarship to pursue his PhD in Australia. He then transferred part of his share to Abena Mansa with special rights in their agreement including rights on new shares, transfer restrictions unless with consent, and the right to appoint a Director if holding is at least 10%. Now Kofi Manu is back and wants to cancel the special rights of Abena Mansa, but Abena Mansa has argued that the special rights she had were class rights that could only be varied with her consent and she was not ready to vary it.
Required:
i) What is meant by class rights? (3 marks)
ii) Under what TWO (2) circumstances can class rights be varied? (4 marks)
iii) Advise Kofi Manu. (3 marks)
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- Tags: Class Rights, Corporate Law, Shareholder Rights, Special Rights, Variation of Rights
- Level: Level 1
- Topic: Company directors and other officers
- Series: DEC 2022
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- 10 Marks
BCL – Dec2022 – Q4b – Alternative forms and constitutions of business organisations
Discuss the requirements for incorporating a company and the implications of unpaid shares.
Question
Lucy Kondomire and Adele Amaney have been engaged in the formation of a private company limited by shares to engage in a curtain business. They are very eager to win a contract to supply the new Parliament House with 3,000 yards of curtains as part of a planned refurbishment of the Chamber of Parliament. They are optimistic of being awarded the contract in view of the President’s campaign to promote locally produced and manufactured goods. They have already proposed the name of the company to be “Nyamenehene Curtains Plaza.” The company is to be registered with 1,000,000 ordinary shares of no-par value and fully subscribed 600,000 and 400,000 shares respectively. In view of this, they have approached you as a Consultant to take over the process of incorporating their company as quickly as possible to enable them to win the contract. They have expressed their desire to pay any fee possible if the process is completed within five days.
Required:
i) State EIGHT (8) requirements for the incorporation of a company to Lucy Kondomire and Adele Amaney. (6 marks)
ii) If it turned out later that Adele Amaney did not pay fully for the shares she subscribed to, and have not been issued with a share certificate, what would be the implication of this occurrence? (4 marks)
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