Scribd
Upload
38 views2 pages

Test 1 CLAW (17-Oct-2024)

Uploaded by

abdullahofficial9090
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
38 views2 pages

Test 1 CLAW (17-Oct-2024)

Uploaded by

abdullahofficial9090
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Certificate in Accounting and Finance Stage Examination

17 October 2024
60 minutes – 39 marks
Additional reading time – None

CAF 7 – COMPANY LAW [TEST – 1]


Syllabus [Chapter 1]

Instructions for Candidates


1. Answer ALL SIX questions, in BLACK pen only.
2. After attempting, convert your answer script to PDF using CamScanner and upload on your LMS.
3. Take CLEAR pictures, in sequence i.e. first Q. 1 then Q. 2. First part a then part b.

Q.1 Select the most appropriate answer from the options available for each of the following
Multiple Choice Questions (MCQs). Each MCQ carries ONE mark.

(i) A public limited company must have at least ___________ members:


(a) Seven (b) Ten
(c) Three (d) Twenty

(ii) Members of a private limited company:


(a) are not allowed transfer of shares
(b) are allowed the transfer of shares
(c) are restricted from transferring their share by articles
(d) None of these

(iii) To what extent is a member of a company which is limited by guarantee personally liable
for the company’s debts?
(a) He is personally liable for all the company’s debts at any time.
(b) He is personally liable for all the company’s debts if the company is wound up.
(c) His personal liability is limited to the amount set out in the Memorandum of
Association to be paid on winding up.
(d) His personal liability is limited to the amount set out in the memorandum at
any time.

(iv) A holding company is the one which:


(a) Holds more than 50% of the voting securities
(b) Controls the composition of the board
(c) Both (a) and (b)
(d) None of these

(04)
Company Law Page 2 of 2

Q.2 (a) State briefly the restrictive conditions under which a private company is incorporated. (03)

(b) Sedan Limited (SL), a company limited by guarantee having a share capital, has been
incurring losses for the last three years. Initially, SL had four directors (members) A, B, C
and D. On 1 July 2019, C had transferred all his shares to D. On 1 March 2020 A, B and
D decided to wind-up the company voluntarily.
Explain the liability of A, B, C and D. (03)

Q.3 (a) Under the provisions of the Companies Act, 2017 list the circumstances under which
Mehkoum Limited may be deemed to be the subsidiary of Hakim Limited. (02)

(b) Kaghan Resham Limited” (KRL) holds 60 percent shares out of total paid up capital of
another public company named “Narran Silk Limited” (NSL). NSL further owns 14
percent shares of “Thandiyani Ice-creams Limited” (TIL). NSL has also entered into an
agreement with other shareholders of TIL to appoint four out of seven directors on the
board of directors of TIL.
Explain their relationships with each other under Companies Act 2017. (02)

Q.4 (a) A company duly registered under the Companies Act, 2017 is a separate legal entity and a
distinct person from the shareholders. Do you agree? Elaborate. (04)

(b) What do you understand by the term “special resolution” as explained in the Companies (04)
Act, 2017?

(c) Differentiate as to how company limited by guarantee differs from company limited by (04)
shares capital.

Q.5 (a) What is meant by the term ‘Member’ as described under the provisions of the Companies (04)
Act, 2017?

(b) A newly incorporated company has received a bill from a corporate lawyer for services
relating to company’s incorporation. The lawyer was hired by the promoters who have refused
to make the payment.

Explain whether the company is liable to pay this amount. (03)

Q.6 (a) Under the provisions of the Companies Act, 2017 explain the term ‘body corporate or
corporation’. (04)

(b) State the liability of the members carrying on business of a company with less than the
legal minimum numbers of members under the Companies Act, 2017. (02)

(THE END)

You might also like