Category: Company law revision kit questions

QUESTION ONE (a) In relation to formation of companies: (i) Explain four common law duties of a promoter. (4 marks) (ii) Discuss three rules that govern pre-incorporation contracts. (6 marks) (b) Summarise five ways in which a company might alter Read More …

QUESTION ONE (a) (i) Explain the meaning of the term “promoter” in the context of company law. (2 marks) (ii) Discuss three duties of a promoter of a company. (6 marks) (b) Outline the contents of a prospectus issued in Read More …

QUESTION ONE (a) With respect to corporate insolvency: (i) Highlight three ways in which a liquidator’s powers might be terminated. (6 marks) (ii) Explain four contents of the official receiver’s report. (4 marks) (b) Sometimes a corporate entity works like Read More …

QUESTION ONE (a) Describe five grounds upon which a person might be disqualified from acting as a company’s director. (10 marks) (b) Sea Bubble Limited was amalgamated with Telta Limited to form Seashore Limited. Some employees of Sea Bubble Limited Read More …

QUESTION ONE (a) With reference to classification of companies, explain the meaning of a “holding company” in relation to another company. (4 marks) (b) A company cannot on its own execute contracts. Describe three mechanisms provided the Companies Act Read More …

QUESTION ONE (a) Explain four distinctions between “co-operative societies” and “limited companies”. (4 marks) (b) Describe three circumstances under which the veil of incorporation of a company might be lifted under case law. (6 marks) (c) (i) Identify two instances Read More …

QUESTION ONE (a) Jones Tiida is a director of Tenti Ltd., a manufacturing company which was established recently. He has approached you for advice on whether or not the company should appoint auditors in view of the need to save Read More …

QUESTION ONE (a) With reference to formation of companies: (i) Explain the meaning of the term “articles of association”. (2 marks) (ii) Describe four effects of registration of the articles of association of a company. (4 marks) (iii) Outline the Read More …

QUESTION ONE (a) On 1 September 2018, Peter Kioko decided to form a company under the name PK Ltd. Before the company was duly formed, Peter Kioko made a contract for the company in which PK Ltd. received a down Read More …

QUESTION ONE (a) The shares of United Limited, a private company are held Jane, John and Alex. Jane and John hold 90% of the company’s shares. However, they feel that the company is in need of further capital but Read More …