MRL2601_exam_notes

Contents MAY/JUNE 2011........................................................................................................................................2 SECTION A .............................................................................................................................................2 OCTOBER/NOVEMBER 2011 .....................................................................................................................5 SECTION A .............................................................................................................................................5 MAY/JUNE 2012........................................................................................................................................8 SECTION A .............................................................................................................................................8 OCTOBER / NOVEMBER 2012 .................................................................................................................12 SECTION A ...........................................................................................................................................12 Downloaded by: bodies | Distribution of this document is illegal S - The study-notes marketplace LSLSS 2 SUGGESTED SOLUTIONS TO PAST PAPERS MAY/JUNE 2011 SECTION A 1.1. Public Company State owned company Personal Liability Company Private company Nonprofit companies External companies 1.2. It is governed by section 16. It may inform of a new MOI, or change to existing provisions of MOI. There is no need to convene a meeting. The proposal to amen the MOI may be by way of a robin among shareholders who are entitled to vote. Proposal should be by board of director, shareholding not less than 10% of voting rights or by court order. 1.3. The court will lift the corporate veil where the entity is used to justify a wrong, protect fraud or defend crime – in Cape Pacific case; the court held that where a company is used to perpetrate fraud or dishonest and improper purpose, the court will disregard the separate personality of a company. The court will also lift the corporate veil where directors use the assets of the company as if its theirs resulting in unconscionable abuse of the personality of a company. 1.4. This is a company previously registered under section 21 of the 1973 Act. Its object must be social activities, cultural activities or group interests. It must have directors but they are not allowed to obtain financial gain except for reasonable remuneration for services rendered. It may have members and some may have the right to vote.