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Law Two Question Paper
Law Two
Course:
Certified Public Accountant
Institution:
Kasneb question papers
Exam Year:
2009
KASNEB
LAW 2
JUNE 2009
ANSWER ANY FIVE QUESTIONS.
QUESTION ONE
Explain the restrictions imposed on the name of a company. (20 marks)
QUESTION TWO
a) Explain the contents of a trust deed (14 marks)
b) Outline the advantages of a trust deed. (6 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)
QUESTION FIVE
Mrs.Akinyi Mburu and Mrs.Jerotich Simiyu intend to start a business in the tourism industry. Mrs. Mburu considers a partnership to be the best from 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)
QUESTION SIX
a) Explain the circumstances when a prospectus is not required in an issue of share or debentures. (6 marks)
b) Discuss the civil and criminal liabilities relating to a prospectus. (14 marks)
QUESTION SEVEN
Mrs.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.
Mrs. Tishie Mulu has approached you for advise on the matter. Advise her on the following:
a) The difference between an installment 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)
QUESTION EIGHT
Explain the procedure followed in a members' voluntary winding up. (20 marks)
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