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

Miss B is working closely with Mr L to deliver an important report on the efficiency of Mr L's department.  They have had to work late together several times, and last night they went out to dinner afterwards.  Miss B is starting to think she may have feelings for Mr L. Could her independence be called into question?

Which of the following is incorrect in relation to a reduction of capital by a private company?

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.