LW F Management, administration and regulation of companies

A person is not validly appointed but acts as a director. This person is:

• 1 A non-executive director
• 2 A shadow director
• 3 A de jure director
• 4 A de facto director

A shadow director is a person:

• 1 Whose instructions the directors are accustomed to follow
• 2 Who has been disqualified
• 3 Who works for the auditor
• 4 Who is secretly paid by the company

Which of these is a duty owed by a director to the company?

• 1 To maximise short-term profits
• 2 To avoid conflicts of interest
• 3 To guarantee the company's debts
• 4 To buy shares in the company

Which resolution needs at least 75 percent of the votes cast?

• 1 A special resolution
• 2 An ordinary resolution
• 3 A resolution of the directors
• 4 A written notice

What is a quorum?

• 1 The number of shares in issue
• 2 The number of directors
• 3 The number of votes for a special resolution
• 4 The minimum number of members needed for a meeting to be valid

Who generally appoints the company's auditor?

• 1 The company secretary
• 2 The members
• 3 The tax authority
• 4 The directors alone

What is a written resolution?

• 1 A resolution approved by the auditor
• 2 A court order
• 3 A resolution passed by members agreeing in writing without a meeting
• 4 A resolution of the board only

What is the role of a company secretary?

• 1 Providing finance
• 2 Auditing the accounts
• 3 Administrative tasks such as keeping statutory records and organising meetings
• 4 Setting the company's strategy