FIRST CITY UNIVERSITY COLLEGE

FACULTY OF BUSINESS, HOSPITALITY AND COMMUNICATION STUDIES

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MID-SEMESTER TEST

Student Name: Sheena Lim Jing Yee

Student ID: B1425

Programme: BSc (Accounting and Finance (Hons)

Module Title: Company Law
Module Code: BA 10167
Semester: October 2020
Examiner: Lim Eng Hoe
Time Allowed: 1 hours (including reading time)
No of Pages: 4 inclusive of cover page
Weighting: Marks obtained in this examination will carry a 20% weightage
in the assessment of your overall performance in this subject.

INSTRUCTIONS TO CANDIDATE:

1. Answer ALL questions.

2. No books, dictionaries, papers or any other written materials are allowed in this
examination.
3. Candidates who are caught breaching the Examination Rules and Regulations will be
penalized for academic dishonesty.
4. Candidates may make legal reference to the Companies Act 2016, Limited Liability
Partnership Act 2012 and Partnership Act 1961.

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ANSWER ALL QUESTIONS (20
marks)

1. A promoter may be said to be:

A. A person who subscribes shares in a company.
B. A person who initiates the formation of a company.
C. A person who sells shares in a company.
D. All of the above.

2. The case law that best described a promoter is:

A. Hyde v Wrench.
B. Twycross v Grant.
C. Salomon v Salomon.
D. None of the above.

3. An incorporation of a company is required under:

A. Partnership Act 1961.
B. Companies Act 2016.
C. Sole proprietor Business Act 1956.
D. None of the above.

4. A promoter is defined in:

A. s 2 Companies Act 1965.
B. s 4 Companies Act 1965
C. s 5 Companies Act 1965.
D. None of the above.

5. The duties of a promoter is:

A. Must act with reasonable skill and care.
B. Must account for any benefits through acting as a promoter.
C. Must not allow his own interest to conflict that of the company.
D. All of the above.

6. Action that can be taken by a company against a promoter for breach of his fiduciary
duties is:
A. The company can rescind the contract made with the promoter.
B. The company can recover the wrongful profit made by the promoter.
C. The company can get damages from the promoter for misstatement in the prospectus
D. All of the above.

7. A pre-incorporation contract is:

A. It is a contract made before a company is incorporated.
B. It is a contract made after a company is incorporated.
C. It is a contract to be made by the promoter with the company.
D. None of the above.

8. The organization that regulate the incorporation of a company is:

A. Companies Commission of Industry.
B. Companies Commission of Malaysia
C. Companies Commission of Trade.

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 D. All of the above.

9. A person intending to incorporate a company must begin with:

A. A search for a proposed company name.
B. A search for a company.
C. A search for a director.
D. All of the above.

10. Which of the following is a private company:

A. Majubina Berhad.
B. Majubina Terhad.
C. Majubina Sdn Bhd.
D. None of the above.

11. A person after obtaining the approved a company name must submit the following
document to CCM for incorporation of the company:
A. Memorandum of Association of the company.
B. Articles of Association of the company.
C. Statutory declaration by the directors.
D. Constitution of the Company.

12. Which of the following is proof that a limited company has been duly incorporated?
A. A letter from the Registrar of Companies.
B. A receipt from the Registrar of Companies.
C. A certificate of incorporation from CCM
D. All of the above.

13. The liability of a member of a limited company is:

A. Unlimited.
B. Limited to the paid-up capital of the company.
C. Limited to his subscribed shares in the company.
D. All of the above.

14. A private limited company has

A. Only 50 members.
B. Only local subscribers.
C. Only 2 members
D. All of the above.

15. A minimum number directors a private limited company can have is:
A. 1.
B. 2.
C. 3.
D. 4.

16. The characteristics of a company limited by guarantee is:

A. It can have shareholders.
B. It needs not have a constitution.
C. The members guarantee the liability of the company to a fixed amount
D. All of the above.

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17. A company after incorporation has the following features:
A. It has no liability.
B. The shareholders are liable for the company’s debts.
C. It has perpetual succession.
D. All of the above.

18. What is the minimum number of members a private company can have?
A. 1 member.
B. 50 members.
C. 20 members.
D. None of the above.

19. What is the maximum number of members a public limited company can have?
A. 20 members.
B. 50 members.
C. 2 members.
D. None of the above.

20. Who is the owner of a public limited company?

A. Directors.
B. Ordinary shareholders.
C. Preference shareholders.
D. All of the above.

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