BC Law Ch 9 Agency and Company Officers

Select the types of authority that apply in the law of Agency.

• Actual Authority

• Applied Authority

• Implied Authority

• Apparent Authority

An agent has (a)   authority to do all that is necessary to carry out what the principal expressly authorised him to do in the ordinary course of business.

When is an agent entitled to use his discretion?

• An agent may never use his discretion as he must follow the principal's instructions.

• An agent may use his discretion if the principal has given clear instructions.

• An agent may use his discretion if the principal has given ambiguous instructions.

• An agent may use his discretion if he knows the subject matter better than the principal.

Which of the following is NOT a way for an agency relationship to be created?

• Express agreement

• Implied agreement

• Principal's ratification

• Principal's verification

If a company decides to appoint a CEO, it must maintain a register of CEOs with ACRA.

• True

• False

Any liquidator appointed by the court is an officer of the company.

• True

• False

Where a person is an undischarged bankrupt, that person is _ disqualified from being a company director.

(a)  

Which of the following is/are a type of director?

• De facto director

• Shadow director

• Executive director

• Equitable director

A director's _ duty to the company requires him to avoid placing himself in a position where his personal interests conflicts with the company's interest

(a)  

A director, doing his incompetent best, enters into a transaction that caused the company to suffer a commercial loss. What duty did the director breach?

• No breach of duty

• Duty to act honesty & in good faith in the company's interest

• Duty to avoid a conflict of interest

• Duty to exercise director powers for proper purposes