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Cmm 411: Company Law Question Paper

Cmm 411: Company Law

Course:Bachelor Of Commerce

Institution: Catholic University Of Eastern Africa question papers

Exam Year:2011

THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
A. M. E. C. E. A

CITY CAMPUS
MAIN EXAMINATION
MAY-JULY 2011
FACULTY OF COMMERCE
DEPARTMENT OF MARKETING AND MANAGEMENT
CMM 411: COMPANY LAW
Duration 2 hrs
Instructions: Answer Questions ONE and any other TWO questions.
Q1.
a) Explain the circumstances under which a registered company can alter its memorandum of association. (10 marks)
b) Mr. Omwando has been appointed as director of ACE automobiles ltd on April 2, 2010. The articles of association of the company provides that the qualification of a director shall be holding of at least 10 shares in the company. Mr. Omwando applies for 10 shares on the company on May 31st 2010. But the shares were allotted only at Board meeting held on August 19, 2010.

Examine with reference to the relevant provisions of the companies act Cap 486 whether Mr. Omwando has completed with the requirements relating to qualification of shares. If not, what are the consequences? (10 marks)
c) What are the main modes in which a company may be wound up and what are the procedures therefore? (10 marks)
Q2. “The separate corporate identify is upheld only so far as the entity is consonant with the underlying policies which give it life” (Null vs Colt Co. Ltd). By use of reasoned arguments supported by relevant illustrations analyze the foregoing statement. (20 marks)
Q3.
a) Discuss the main ways in which a registered company may raise capital? (10 marks)
b) What are the fiduciary duties of promoters? (10 marks)
Q4. “The exceptions to the rule in Foss vs Harbottle (1843) 2Hare 461, serve no useful purpose in protecting minority shareholders.” Do you agree with this statement? (20 marks)
*END*

Cmm 411: Company Law Question Paper

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