Company Law

Can the company secretary be a director of the company? 

• Yes, but not the sole director. 
• Yes, and become the sole director.
• No, it's impossible. 
• I need to study more. 

Do the courts like to interfere in matters connected with fiduciary duty? 

• Yes, they like to interfere completely. 
• They don't care.
• No, they are reluctant. 
• I need to study more. 

May a partnership cease to exist when a partner dies? 

• No. 
• Yes. 
• It exists for only a short time. 
• I need to study more.

What are the owners of a company insulated against? 

• Personal liability. 
• Public liability. 
• They are not insulated against anything.
• I need to study more. 

What can a company own in its own name?  

• Only the directors own. 
• The company can't own. 
• Property. 
• I need to study more.

What can be lifted if the company is used to perpetrate fraud or act ultra vires? 

• The carporate veil may be lifted.
• The company loses money. 
• An expensive fine may be lifted. 
• I need to study more. 

Who issues a certificate of incorporation? 

• The company itself. 
• A governental authority. 
• It's issues automatically. 
• I need to study more. 

Which is not a characteristics of a company?

• Legal personality

• Limited liability

• Perpetual succession

• No common seal

Who takes full legal responsibility in a company limited by shares?

• The shareholders

• The owners

• The directors

• The government

The process of forming a company including where it becomes a legal entity is known as ______.

• Incorporation

• A franchise

• Liquidity

• Goodwill