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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:2010

FACULTY : BUSINESS AND MANAGEMENT STUDIES

DEPARTMENT : BUSINESS ADMINISTRATION(SB)

TIME : 2 HOURS

INSTRUCTIONS Answer Question ONE (compulsory) and any Other TWO Questions.

Question 1

a)i. Define the term Memorandum of Association. (2 marks)

ii. Explain any 4 clauses of Memorandum of Association (4marks)

b) Outline any five advantages and disadvantages of incorporation. (10marks)

c) Who is a promoter in relation to the formation of a company? What are his fiduciary duties? (6marks)

d) Explain the consequences of an ultra vires transactions? (5marks)

e) What is perpetual succession? (5marks)

Question 2

a) State and explain two ways through which a person may cease to be a member of a company. (10marks)

b) Outline the Statutory rights that are conferred to members of a company. (10marks)

Question 3

Discuss FIVE types of capital which a company can raise by issue of shares. (20marks)

Question 4

a) Outline the main contents of Articles of Association. (10marks)

b) Explain the procedures to be followed in alteration of the articles of Association. (10marks)

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