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Law Ii Question Paper
Law Ii
Course:
Institution:
Kasneb question papers
Exam Year:
2009
KASNEB
CPA PART II
LAW II
WEDNESDAY: 10 June 2009. Time Allowed: 3 hours.
Answer any FIVE questions. All questions carry equal marks.
QUESTION ONE
Explain the restrictions imposed on the name of a company. [20 marks]
QUESTION TWO
(a) Describe the contents of a trust deed. [14 marks]
(b) Outline the advantages of a trust deed. [6 marks]
(Total: 20 marks)
QUESTION THREE
Write explanatory notes on the following types of resolutions indicating the business requiring each type of resolution:
(a) Ordinary resolution [6 marks]
(b) Special resolution [9 marks]
(c) Resolution requiring special notice [5 marks]
QUESTION FOUR
Section 159(1) of the Companies Act stipulates that every company shall appoint an auditor or auditors to hold office.
(a) Discuss the main obligations of an auditor. [16 marks]
(b) Explain the ways in which the auditor's remuneration is fixed [4 marks]
(Total: 20 marks)
QUESTION FIVE
Mrs. Akinyi Mburu and Mrs. Jerotich Simiyu intend to start a business in the tourism industry. Mrs. Mburu considers partnership to be the best form of business while Mrs. Simiyu prefers a private company.
Advise Mrs. Mburu and Mrs. Simiyu on the following:
(a) The advantages of a registered company over a partnership. [14 marks]
(b) The advantages of a partnership. [6 marks]
(Total: 20 marks)
QUESTION SIX
(a) Explain the circumstances when a prospeectus in not required in an issue of shares or debentures. [6 marks]
(b) Discuss the civil and criminal liabilities relating to a prospectus. [14 marks]
(Total: 20 marks)
QUESTION SEVEN
Miss Tishie Mulu has received a letter from a company in which she is a shareholder informing her that the company is making a call in accordance with the provisions of the articles of association.
Miss Tishie Mulu has approached you for advice on the matter.
Advise Miss Tishie Mulu on the following:
(a) The difference between an instalment and a call. [3 marks]
(b) The rules relating to making calls on shares. [12 marks]
(c) The consequences of payment of a call in advance. [5 marks]
(Total: 20 marks)
QUESTION EIGHT
Explain the procedure to be followed in a members' voluntary winding up. [20 marks]
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