2025 06 Secretary Internal Training

Who has the rights to exercise allotment of shares?

• Company Director

• Member

• Company

• Company Secretary

In a company, all 3 members (Member 1, 2, 3) informed Company Secretary on 01 June 2025 on their intention to allot shares by cash method.

However, Member 1 provided his bank-in slip on 03 June 2025, Member 2 provided his bank-in slip on 13 June 2025, and Member 3 provided his bank-in slip on 19 June 2025.

When shall be the effective event date of the allotment?

• 01 June 2025

• 03 June 2025

• 13 June 2025

• 19 June 2025

Which of the following are the CORRECT match between 3 methods of allotment and respective documentations needed to obtain from client for record purposes?

• By Cash = Bank-In Slip; By Way of Contra = Reduction in Director’s Account; By Otherwise = Contract

• By Cash = Nil; By Way of Contra = Reduction in Director’s Account; By Otherwise = Contract

• By Cash = Bank-in slip; By Way of Contra = Reduction in Company Equity Account; By Otherwise = Contract

• By Cash = Bank-In Slip; By Way of Contra = Reduction in Director’s Account; By Otherwise = Insurance Premium

Which of the following events must be done before allotting Ordinary Class A shares?

• Passing Director’s Written Resolution

• Passing Member’s Written Resolution

• Adoption of Constitution

• All of the above

In the event of Transfer of shares, which condition is required for a company that has been incorporated for more than 18 months?

• Prepared management account to reflect current shareholding

• Obtained commissioner of oath's seal on share transfer instrument S105.

• Have lodged the latest audited report to SSM.

• Have lodged the latest Annual Return to SSM.

What does a share represent?

• A debt the company owes

• A certificate of employment

• A unit of ownership in a company

• A fixed return instrument

What happens to unpaid dividends in non-cumulative preference shares?

• Carried forward to next year

• Paid in shares

• Forfeited permanently

• Paid in double in future

Which of the following statements about preference shares is FALSE under the Companies Act 2016?

• Preference shares can only be issued if allowed by the company’s Constitution

• All preference shares must carry voting rights

• The Constitution must state dividend and capital repayment terms for preference shares

• A company can be fined for issuing preference shares without proper constitutional provision

A company issues preference shares without having Company’s Constitution. Later, the directors claim they didn’t know it was required. Who is still legally liable?

• Only the company, because it holds the Constitution

• Only the directors, because they made the decision

• Everyone involved: the company, directors, and company secretary

• No one, because it was an honest mistake

Which right is NOT automatically granted to ordinary shareholders under Section 71 (unless stated otherwise)?

• Right to speak at general meetings

• Right to vote on a show of hands

• Right to sell company property

• Right to equal dividends if declared