Quiz 2 Corporate Law

1. The allotment of shares refers to the process whereby a person's name is entered into the register of members.

• True

• False

2. Which one of the following is NOT a possible consequence of a director accepting an unauthorized third-party benefit?

• The director commits an either-way offence.

• The company can summarily terminate the director's service contract and dismiss him without notice.

• The company can rescind the contract and recover the benefit obtained by the director.

• The company can claim damages in fraud from the director.

3. The general duty of a director are only ever owed to the company

• True

• False

4.   What term describes the combination of two or more businesses to become one?

• Acquisition

• Restructuring

• Merger

• Incorporation

5.  When did the Companies Act come into effect?

• 1957

• 1999

• 2002

• 2006