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Company Law Question Paper
Company Law
Course:
Bachelor Of Commerce
Institution:
Kca University question papers
Exam Year:
2010
KCA UNIVERSITY
BACHELOR OF COMMERCE (CFU 200)
ANSWER QUESTIONS ONE AND TWO OTHER QUESTIONS.
Q1.
a) What are the legal consequences of registration of a company under the
companies
Act (cap 486) law of Kenya? (8
marks)
b) Under what circumstances may a company be deemed to be a subsidiary of
another company? (6 marks)
c) Mr. & Mrs. Murgor intend to form a limited liability company known as M & M
Hardware Ltd. They approached you and seek your advice.
Advise them on the following issues:-
i. What is the meaning of a private company according to the Company Act?
(4 marks)
ii. What are the advantages of forming a private company as opposed to a public
company? (4 marks)
d) Distinguish between a company limited by shares from a company limited by
guarantee. (4 marks)
e) What are the contents of memorandum of association as stated in the
Companies Act.(4 marks)
Q2. Explain the appointment and duties of a company secretary in a Limited Liability
Company
(20
marks)
Q3.
a) Identify the different types of meetings that may be held by a public limited
company. (4 marks)
b) How can a company be regarded to be a subsidiary of another company?
(10 marks)
c) (i)What is a special notice?
(ii)Give the circumstances under which a special notice would be required with
respect
to company meetings. (6 marks)
Q4.
a) Explain the ways in which a person would:-
i. Become a member of the company. (5
marks)
ii. Cease to be a member of a registered company .
(5 marks)
b) George, a sole trader carrying on a business in the printing industry, has asked
Tumaini Bank to advance him Shs. 500,000 /= as an addition working capital. The
bank is prepared to advance the money on condition that George offers a
security. George has a share certificate for 5,000 shares issued by Mwangaza
Company Ltd. George wants to know whether he can use the shares whose
value is Kshs. 650,000/= as security for the loan. He further seeks to know whether
he could still receive dividends even after he has charged the shares to the
bank. (10 marks)
Q5.
a) Discuss the rules relating to the appointment and disqualification of directors of a
company.
(10 Marks)
b) What are the directors rights with regard to receiving remuneration and
compensation for loss of office.
(6 Marks)
c) Advice the directors of the company on the ordinary business transacted at the
Annual General Meeting.
(4 marks)
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