Company Law-Recap

What does 'Limited Liability by Shares' principle mean ?

• liability of shareholder's are unlimited

• liability of shareholder's are limited to the re sale value of shares they have in the company

• liability of shareholder's are limited to the extent of the nominal value of shares in the company

• share holder's have no liability for company's losses

Which document must contain a 'true and accurate statement of the affairs of the company' and need to precede the issue of securities

• MOA

• AOA

• Prospectus

• Statement of Directors

When there is an ambiguity between what is contained in MOA and what is there in AOA .......... will prevail ?

As far as a creditor is concerned which charge on the assets of the company will be more secured to protect his interest against others ?

• floating charge

• fixed charge

Are private companies allowed to issue shares ?

• Yes

• No

Which Doctrine protects 'the interest of the company from outsiders' ?

• Doctrine of Indoor Management

• Doctrine of Ultravires

• Doctrine of Constructive Notice

Which doctrine prevents the 'power of the directors from acting beyond the scope of objects' of the company?

• Doctrine of Indoor Management

• Doctrine of Ultra vires

• Doctrine of Constructive Notice

'The Doctrine of Indoor Management' was established through which case ?

• Ashbury Railway Carriage Company

• Derry v. Peek

• Turquand's Case

• Salomon's Case

Which case established that 'promoter of a company holds a fiduciary position in relation to the company'

• Twycross Case

• Erlanger's Case

• Laguna's Case

• Whaley bridge printing company case

Which is the hybrid form of business association that has the benefits of limited liability and has less compliance and minimum regulatory formalities ?

• General Partnership

• One Man Company

• Limited Liability Partnership

• General Proprietorship