True / False Chapter 2 Quiz Company Law

A promoter owes a fiduciary duty to the company.

• True

• False

A promoter can make secret profits from the company if shareholders do not know about it.

• True

• False

Under common law, a company can ratify a pre-incorporation contract.

• True

• False

Section 65 of the Companies Act 2016 allows a company to ratify pre-incorporation contracts.

• True

• False

Under Companies Act 2016, a company must adopt a constitution before it can operate.

• True

• False

The constitution of a company is binding between the company and its members.

• True

• False

Outsiders are also legally bound by the constitution of the company.

• True

• False

Under CA 2016, companies have the same capacity as a natural person unless restricted by their constitution.

• True

• False