CIMA Certificate BA4 Reddit Questions

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Question 92

Which of the following is incorrect?

Options:

A director may be removed from office for any reason by an ordinary resolution.

A special resolution is needed to dismiss a director if the Articles of Association provide that he is to be a director for life.

The company must be given 28 days' notice of a proposed resolution to dismiss a director.

A director who is under threat of removal has the right to speak at the meeting, whether or not he is a member.

Question 93

Which of the following is correct?

i. A company intending to issue new shares for cash must first offer them to the existing shareholders.

ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.

iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.

Options:

(i) only

(ii) only

(ii) and (iii) only

(i), (ii) and (iii)

Question 94

Immediately before being placed in creditors voluntary liquidation, Tom, the sole director of Bee Ltd, arranged for the company to make an early repayment of an unsecured loan made to Bee Ltd by his wife Anne. Which of the following is correct?

Options:

The company has acted in breach of fiduciary duty and can be made liable up to the amount of the loan.

The company has given a "preference" to Anne, and the court may make any order it thinks fit to restore the position to what it was before Anne was repaid.

The company has entered into a "transaction at an undervalue" with Anne, and the court may fine or imprison Tom.

The transaction amounts to "wrongful trading" and Tom may be held personally liable up to the amount of the loan.

Question 95

Which of the following is correct?

(i) A contract of guarantee is unenforceable unless it is evidenced in writing.

(ii) A contract to sell land must be in writing.

(iii) A contract of employment must be in writing.