LW F Management, administration and regulation of companies

Written by Saad Rahman (ACCA)

ACCA · Corporate and Business Law · 8 questions

Name: ____________________ Date: ____________

A person is not validly appointed but acts as a director. This person is:
- A A non-executive director
- B A shadow director
- C A de jure director
- D A de facto director
A shadow director is a person:
- A Whose instructions the directors are accustomed to follow
- B Who has been disqualified
- C Who works for the auditor
- D Who is secretly paid by the company
Which of these is a duty owed by a director to the company?
- A To maximise short-term profits
- B To avoid conflicts of interest
- C To guarantee the company's debts
- D To buy shares in the company
Which resolution needs at least 75 percent of the votes cast?
- A A special resolution
- B An ordinary resolution
- C A resolution of the directors
- D A written notice
What is a quorum?
- A The number of shares in issue
- B The number of directors
- C The number of votes for a special resolution
- D The minimum number of members needed for a meeting to be valid
Who generally appoints the company's auditor?
- A The company secretary
- B The members
- C The tax authority
- D The directors alone
What is a written resolution?
- A A resolution approved by the auditor
- B A court order
- C A resolution passed by members agreeing in writing without a meeting
- D A resolution of the board only
What is the role of a company secretary?
- A Providing finance
- B Auditing the accounts
- C Administrative tasks such as keeping statutory records and organising meetings
- D Setting the company's strategy

Answer key

1. D, 2. A, 3. B, 4. A, 5. D, 6. B, 7. C, 8. C