Companies Act 2016 Quiz

1. Which of the following is true regarding the constitution of a company under the Companies Act 2016?

• a) All companies are required to have a constitution

• b) Only companies limited by shares are required to have a constitution

• c) Companies limited by guarantee (CLBG) must have a constitution

• d) Companies incorporated before 2016 must adopt a new constitution immediately

2. Under the Companies Act 2016, if a company does not have a constitution, what governs the rights, powers, duties, and obligations of its members and directors?

• a) The memorandum and articles of association

• b) The default provisions of the Companies Act 2016

• c) The internal policies of the company

• d) The Articles of the previous Act

3. Which of the following is not a mandatory requirement for a company limited by guarantee (CLBG) to include in its constitution?

• a) The capacity, rights, powers, or privileges of the company

• b) A clause regarding the creation of share capital

• c) The objects of the company

• d) The number of members with which the company proposes to be incorporated

4. What is the penalty for a company that fails to lodge its constitution with the Registrar of Companies (ROC) within 30 days after adoption?

• A fine up to RM50,000

• Suspension of company operations

• A warning and requirement to resubmit within 60 days

• A fine up to RM10,000 and additional fines for each day of delay

Which section of the Companies Act 2016 outlines that a company may adopt a constitution by passing a special resolution?

• Section 33(1)

• Section 36(1)

• Section 32(1)

• Section 31(1)

6. What happens if a company adopts a constitution that contradicts the Companies Act 2016?

• The constitution will be considered valid with priority over the Companies Act

• The constitution will have no effect to the extent that it contradicts the Act

• The constitution will be enforced despite the contradiction

• The company will be required to dissolve

7. How does the constitution function as a contract between a company and its members?

• The constitution is a binding contract that members must adhere to

• The company cannot enforce any provision of the constitution

• The constitution is a non-binding agreement that members can ignore

• The constitution is a contract between the company and its shareholders only

8. In the case of Hickman v. Kent or Ramney Marsh Sheep-Breeders’ Association, what did the court rule regarding the arbitration clause in the Articles of Association?

a) The arbitration clause was unenforceable because it was not in the company's interest
b) The arbitration clause was binding on the member
c) The arbitration clause was invalid due to lack of consent
d) The member could refuse arbitration and take the matter to court

• The arbitration clause was unenforceable because it was not in the company's interest

• The arbitration clause was binding on the member
  

• The member could refuse arbitration and take the matter to court

• The arbitration clause was invalid due to lack of consent