Deck 9: Mental Capacity Defences

Question 1

Which of the following statements is not true in relation to the shareholders' powers of governance?

A) certain fundamental decisions have to be made by shareholders
B) shareholders can direct the board by special resolution
C) shareholders cannot remove directors from office
D) when the board is unable to act, power returns to shareholders

Answer 1

C

Question 2

Non-executive directors are meant to

A) replace executive directors
B) monitor the behaviour of the board
C) represent shareholders
D) represent creditors

Answer 2

B

Question 3

Any person in accordance with whose directions the directors are accustomed to act is considered

A) a shadow director
B) a de-facto director
C) a de-jure director
D) an executive officer

Answer 3

A

Question 4

What is the meaning of 'quorum'?

A) a type of chair
B) a type of corporate organisation
C) the minimum of people necessary for a General Meeting to be held
D) a gathering of shareholders

Question 5

What is the meaning of 'proxy'?

A) a person appointed by a member entitled to vote on a General Meeting to attend and vote on their behalf
B) a class of shares
C) a new shareholder
D) a shadow director

Question 6

What is meant by special resolution?

A) a decision by a majority of 51%
B) a decision by a majority of 75%
C) a decision by a majority of 90%
D) a unanimous decision

Question 7

Which of the following is not a power given to shareholders by the Companies Act 2006?

A) to change the articles by special resolution
B) to change the articles by ordinary resolution
C) to reduce share capital
D) to remove directors from office

Question 8

The shareholders can direct the directors to take or refrain from taking certain actions

A) by ordinary resolution
B) by special resolution
C) always
D) if reasonable

Question 9

Article 3 of the Model Articles entitles

A) any director to exercise the powers of the company
B) any shareholder to exercise the powers of the company
C) the directors collectively to exercise the powers of the company
D) the shareholders collectively to exercise the powers of the company

Question 10

Which of the following is not a requirement in becoming a director

A) being over the age of 16
B) never having been declared bankrupt
C) having previous experience of running a company
D) not been disqualified