BA4 Exam Dumps : Fundamentals of Ethics, Corporate Governance and Business Law

Which of the following is CORRECT?

(i) A company registered today may restrict its ability to contract by including a provision to that effect in its articles of association.

(ii) A company which was registered before the Companies Act 2006 came into force may pass a special resolution to remove its objects clause from its memorandum of association.

(iii) If the directors ignore any restriction on the company’s ability to contract they may be sued for breach of duty by the company.

Which of the following is CORRECT in relation to a Limited Liability Partnership (“LLP”)?

(i) An LLP is formed by registration with the Registrar of Companies

(ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection

(iii) An LLP is liable to pay corporation tax on its profits

Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.

Which of the following is correct? 

(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.

(ii) A contract of guarantee is only enforceable if it is evidenced in writing.

(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.