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

Tom - A 75-year-old firefighter whose boss made him retire because of the physical nature of the job.

Nigel - A security guard who had been dismissed for drinking on the job.

Sara - An accountant who was dismissed for lying about her qualifications during her initial interview.

Bob - An employee at a biscuit factory who was dismissed because the company they worked for wanted to save money despite having no debts.

Anita - An employee at an IT firm who was dismissed by her boss because she is a graduate who doesn't have much experience.

If a company has restricted the ability of its directors to contact and the directors ignore the restrictions, then the outsiders may not enforce the contract.

The shareholders of a company have the ability to enter into a contract on behalf of the company, irrespective of any restrictions on the directors.

If a company wishes to restrict the ability of its directors to enter into particular contracts it may do so by placing restrictions on the directors in its

articles of association

If the shareholders learn that the directors are about to ignore the restrictions placed upon their ability to contract by the company the shareholders are unable to prevent the directors from proceeding

To remove shareholder responsibility for the conduct of the company.

To reduce the burden of regulation on all companies to increase shareholder wealth

To enable shareholders to reduce their involvement in the governance of the company

To ensure that shareholders may have confidence that the company is well run