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Buss 216:Business Law Ii Question Paper

Buss 216:Business Law Ii

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2013

KENYA METHODIST UNIVERSITY

END OF 1''ST ''TRIMESTER 2013 (DAY) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : BUSS 216
UNIT TITLE : BUSINESS LAW II

TIME: 2 HOURS

INSTRUCTIONS

Question One

Explain three ways in which a company may raise capital.

(6 Marks)

Outline the contents of a register of members of a company.

(6 Marks)

It is a fundamental principle of a company law that the share capital of a company must be maintained. Discuss the legal consequence of this principle.

(10 Marks)

Explain the reasons why a third party dealing with the company may concern himself with the doctrine of ultra vires.

(4 Marks)

The companies act (cap 486) of the laws of Kenya imposes certain statutory limitations and obligations on directors. List four such limitations.

(4 Marks)

Question Two

In relation to the provisions of the companies act (cap 486) of the laws of Kenya, outline general provisions relating to meeting and votes.

(10 Marks)

State the duties of an auditor of a company.

(6 Marks)

Describe the categories of a person who do not qualify to be appointed auditors of a company

(4 Marks)

Question Three

What are the different types of liquidation and who may commence proceedings?

(6 Marks)

How does a creditor demonstrate that the company is unable to pay its debts?

(8 Marks)

What courses are open to a secured creditor in liquidation?

(6 Marks)

Question Four

Explain five circumstances under which the veil of an incorporated company may be lifted by the court.

(10 Marks)

Name and explain four classes of persons who may incur civil liability in respect of a false statement in prospects.

(6 Marks)

Explain the doctrine of ultra vires with regard to the objects of a company.

(2 Marks)

Show the effects of ultra vires transactions.

(2 Marks)

Question Five

State the decision in Solomon V Solomon and Co. 1897 explaining the importance of the decision.

(6 Marks)

Write short notes on the Nairobi Stock exchange.

(6 Marks)

Who is a director of a company? State and explain three duties and liabilities of a director of a company.

(8 Marks)

Buss 216:Business Law Ii Question Paper

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