BCL – L1 – SA – Q70 – Company Directors

Action outside the board of directors’ powers.

Question

Which is outside the powers of the board of directors?

A To issue debentures

B To make loans

C To remit the payment of any debt due by a director

D to issue prospectus

Answer

Explanation:
The correct answer is C because remitting a director’s debt involves a conflict of interest and typically requires shareholder approval, not board authority. The board can issue debentures (A), make loans (B), and issue a prospectus (D) within its powers, subject to the company’s articles and regulations.

Tags: Board Powers, Company Law, Debentures, Prospectus
Level: Level 1

Topic: Company directors and other officers

Uploader: Samuel Duah