UNIT D

In relation to company law, which of the following situations will allow the courts to 'lift the veil' of incorporation?

• Where a director commits fraud

• Where a member of a solvent company fails to pay the company what is outstanding on their share capital

• Where an employee commits a tort in the course of their employment

When must a partner's authority bind the partnership ?

• When a partner acts with or without authority

• When a partner acts in the usual course of the business

• When a partner manages a business

When must a partner's authority bind the partnership ?

• When a partner acts with or without authority

• When a partner acts in the usual course of the business

• When a partner manages a business

Which of the statements below best describe limited liability partnership ?

• In the absence of LLP agreement, the default provisions of the second schedule of the LLP Act 2012 covering the mutual rights and duties of LLP

• •a partner who retires from the firm, does not thereby cease to be liable for partnership debts or obligations incurred before retirement

• Must dispose owner’s personal assets to settle the business’ debts.

Which of the following is the benefit of running a sole proprietorship?

• The business is highly dependent on the owner.

• An absence of economic knowledge on the owner is not of importance

• No formal procedures to set up the business

In carrying out his duty as agent, if the agent exercises something usual or customary in the circumstances, he is said to be exercising

• ostensible authority

• implied authority

• authority by necessity

A company’s name is stated as “Usaje Berhad”. Which of the following statements is correct?

• The company’s shares are limited

• The company’s shares may not be offered to the public

• The company’s shares are freely transferable

Bad intends to form a Limited Liability Partnership business with his childhood friend   Cho. Which is of the following is false about the new partnership business?

• A limited liability partnership is a separate legal personality

• A limited liability partnership cannot be sued in its personal

• A limited liability partnership has perpetual succession

• A limited liability partnership can acquire and own properties in its own name

Who is responsible for the formation of a company?

• A director

• A member

• A shareholder

• A promoter

In relation to the alteration of the company’s constitution, which of the following statements are                correct?

 

                      1             A director or member of company can apply to court to amend the constitution

                      2             A company may amend its constitution by passing special resolution

                      3             Alteration must be for the benefit of the company as a whole

• 1 and 2

• 1 and 3

• 2 and 3

• 1, 2 and 3