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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:2011

FACULTY : BUSINESS AND MANAGEMENT STUDIES

DEPARTMENT : BUSINESS ADMINISTRATION

TIME : 2 HOURS

INSTRUCTIONS Answer Question ONE and any Other TWO Questions

Question 1

a) Explain the limitations relating to alteration of articles of a company (4marks)

b) What do you understand by “charge’ under the companies Act Cap. 486 laws of Kenya? Distinguish between ‘fixed charge’ and ‘floating charge’ (6marks)

c) Who are the persons entitled to receive a notice of the general meeting of a company, registered under Cap 486? Shall the non-receipt of the notice of the general meeting by any member invalidate the proceedings of the meeting? Explain (6marks)

d) How can one become a member of a company? What are his rights (10marks)

e) Explain clearly the meaning of ‘private’ and ‘public’ company (4marks)

Question 2

Mr. Alpha and his friend Jackie intend to form a company. They have approached you for advice. Explain to them the procedure for forming the company which is limited by shares (20marks)

Question 3

a) What are the salient duties and powers of the chairman of a general meeting of a company? (10marks)

b) Explain with cases the effects of ultra vires transactions (10marks)

Question 4

In the context of voluntary winding up, explain the statutory provisions regarding the powers of the liquidator which may be exercisable:

a) With the court sanction (10marks)

b) Without court sanction (10marks)

Question 5

a) Distinguish between a company and partnership (10marks)

b) Outline the advantages of incorporation (10marks)

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