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R, S and T are the only shareholders in RST Ltd each holding 5,000 ordinary £1 shares. R is the only director of the company. The articles of association of RST contain the following provisions:

1. R is to be a director of RST Ltd for life.

2. In the event of any resolution to dismiss R by ordinary resolution his votes shall count three times.

Which of the following is CORRECT?

(i) Provision 1 is void as a director cannot be appointed for a period exceeding 3 years.

(ii) Provision 2 is valid and R may outvote any proposed resolution to dismiss him.

(iii) Provisions 1 and 2 are both unenforceable by R as they are not ordinary membership rights.

Options:

(i) only

(ii) only

(iii) only

(i) and (iii) only

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Question 2

Why are the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior “fundamental”?

Options:

Because they are the foundations of reasoning and professional practice

Because they are the foundations of human rights

Because they are the foundations of corporate responsibility

Because they are the foundations of management accounting

Question 3

Which of the following is INCORRECT in relation to the Unfair Terms in Consumer Contracts Regulations 1999?

Options:

The regulations only apply to standard form contracts.

The regulations only apply to exemption clauses.

The regulations only apply to consumer contracts entered into by a human being and do not apply to limited companies.

Whether or not a clause is written in plain English is a factor which may be taken into account in deciding whether the term is unfair.

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