Company Law (C11-C14) Revision

When the Notice of Incorporation is issued by the CCM, a company is considered to come into existence.

• TRUE

• FALSE

The followings are the characteristics of a private company except:

• It does not offer its shares to public

• It has the word "Sdn" as part of its name

• It does not invite public to deposit money with the company

• It has a maximum number of 55 shareholder

"Liability of members is limited to the amount of unpaid shares". This is a definition of ___.

• an unlimited company

• a company limited by shares

• a company limited by guarantee

A public company limited by guarantee does not have share capital.

• TRUE

• FALSE

Members of company limited by guarantee must contribute money as stated in constitution to pay company's debt.

• TRUE

• FALSE

Members of the unlimited company will be liable for the debts of a company ___ if the company's assets are not sufficient to pay its liabilities in the event of winding up.

• limited to the amount of unpaid shares

• limited to amount stated in company's constitution

• without limit

Accountants who form companies on the instructions of others can be considered as the promoter.

• TRUE

• FALSE

The contracts made by promoters on behalf of the company before the company is successfully incorporated is called ____.

• Post-Incorporation Contracts

• Pre-Incorporation Contracts

• Premature Contracts

• Post-Corporate Contracts

Promoter may keep any commissions gained if company affirms all transactions which had been disclosed under the pre-incorporation contract.

• TRUE

• FALSE

Company may choose to terminate the pre-incorporation contract which has been disclosed by the promoter.

• TRUE

• FALSE