Part D The formation and constitution of business organisations 14: Constitution of a company 223Quick Quiz
1 Percy Limited has recently formed a contract with a third party which is restricted by the objects in the
company's constitution.
Which of the following statements is/are correct?
A The validity of the act cannot be questioned on the grounds of lack of capacity by reason of
anything in the company's constitution.
B The act may be restrained by the members of Percy Ltd.
C The act may be enforced by the third party.
D The directors have a duty to observe any limitation on their powers flowing from the company's
constitution.2 If a company wishes to restrict its objects, what kind of resolution is required?
A Special resolution
B Special resolution with special notice
C Ordinary resolution with special notice
D Ordinary resolution3 A company has been formed within the last six months. Another long-established company considers that
because of similarity between their names there may be confusion between it and the new company. The
only action the long-established company can take is to bring a passing-off action if it is to prevent the
new company using its name.
True^
False
4 Which of the following persons are not bound to one another by the constitution?
A Members to company
B Company to members
C Members to members
D Company to third parties5 How long does a company have to file amended articles with the Registrar if they have been altered?
A 14 days
B 15 days
C 21 days
D 28 days