Buss 216:Business Law Ii Question Paper
Buss 216:Business Law Ii
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
SCHOOL : SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
A.B. and C incorporated a Company in 2009 In January of 2011 it became apartment that the company is not able to pay its creditors in full.
a) Joan, the company secretary has come to you for advice on the following issues.
i) The meaning of a winding up order. (3marks)
ii) The parties who may petition the court for the winding up order. (3marks)
iii) Other than the company`s inability to pay its debts whether their are other circumstances that may lead to its winding up. (14marks)
b) Critically examine the circumstances that may make a court to issue an order for the lifting of the viel of incorporation. (10marks)
Question 2
Section 22 of the Companies Act states that once a company`s memorandum and articles of association are registered they constitute a contract between the company and the members between themselves. (20marks)
Question 3
a) Critically examine the legal significance (effect) of the registration of a company. (10marks)
b) Set out in details the rights of a member of a company. (10marks)
Question 4
a) Discuss the duties of the directors of a company under:-
i) The common law (7marks)
ii) Doctrine of equity (7marks)
iii) To whom are these duties owned? Give reasons. (6marks)
b) To whom are these duties owned? Give reasons. (6marks)
Question 5
The distinction between an altra vines transactions and a transaction beyond the powers of an officer of the company is important in determining the validity of any contract entered into in the name of the company. (20marks)
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