Practice question bank 367
Question 43
A company auditor has which of the following rights?
A To vote in the company's general meetings
B To attend board meetings
C To appoint non-executive directors
D To access, at all times, the books, accounts and vouchers of the company (2 marks)
Question 44
What is the notice period for a meeting at which a special resolution is to be voted on?
A 14
B 21
C 28 (1 mark)
Question 45
The ordinary business of an annual general meeting includes which of the following?
A Reducing the company's share capital
B Changing the company's name
C Appointing an administrator
D Approving the payment of dividends (2 marks)
Question 46
The Chief Executive Officer of KL Ltd is Jeremy. Jeremy also runs his own business, FD Ltd, in his spare
time. KL Ltd recently contracted to buy a significant amount of commercial goods from FD Ltd. Jeremy
attended the KL Ltd board meeting that approved the contract and voted in favour of it, without revealing
his association with FD Ltd.
Required
(a) State what is meant by a director's fiduciary duties. (2 marks)
(b) Explain which of a director's statutory duties Jeremy may have breached. (4 marks)
(Total = 6 marks)
Question 47
There are various grounds for the compulsory winding-up of a company. In which of the following
situations will a court order the winding-up of a company on the just and equitable ground?
A Where 50% of the members disagree with the actions of the directors
B Where the company has failed to pay its creditors for three months
C When the main object of the company cannot be achieved (1 mark)
Question 48
What is the name given to the person in charge of a voluntary winding-up of a company?
A Administrator
B Reciever
C Chargee
D Liquidator (2 marks)