Online MCQ Test Questions & Answers 2023
Question 1
Which of the following statements about a company making a contract through agents is correct?
o A company is legally bound by any contract made on its behalf by an agent with
authority.
o A company is only legally bound by a contract made on its behalf by an agent with the
writtenauthority granted under the company seal.
o A company is only legally bound by a contract made on its behalf by an agent if its
constitution expressly allows the appointment of agents.
o A company is only legally bound by a contract made on its behalf by an agent if the agent is
an officer of the company.
Answer: A
Response Feedback:
Question 2
A “special” resolution is one that requires:
o That votes cast in favour of the resolution represent more than 50% of all votes cast by
members present.
o The unanimous consent of all members of the company.
o That votes cast in favour of the resolution represent more than 75% of all votes cast by
members present.
o None of the above.
Answer: C
Response Feedback:
See s 184 of the Companies Act for the definition of special resolution.
Question 3
Which of the following is not a matter typically dealt with by the company's internal governance
rules (articles and memorandum of association)?
o Rules relating to dividends.
o Penalties for breach of the duties owned by directors.
o Rules relating to the transfer and transmission of shares.
o The appointment and removal of the company’s officers.
o The procedure for convening and conducting directors’ and members’ meetings.
Answer: C is wrong
Online Mcq Test
, Response
Feedback: This is not a matter typically dealt with by the company's internal governance
rules; rather, it is a matter addressed by the law.
Question 4
When a new share is issued by a company, the directors will require payment in full of the issue price
by the member. Is this statement:
o True
o False
o True if have money
o False as you need to have all the money
Answer: C is wrong.
Response
Feedback: When a new share is issued by a company, the directors may require payment in
full of the issue price, or may allow the member to pay part of the issue price at the
time of issue.
Question 5
Which of the following cases is not an authority for the proposition that members cannot override the
decisions of the board of directors?
o Automatic Self-Cleansing Filter Syndicate Co Ltd v Cunninghame (1996)
o John Shaw & Sons (Salford) Ltd v Shaw (1935)
o Howard Smith Ltd v Ampol Petroleum Ltd (1974)
Answer: C
Response Feedback:
Question 6
Participants in a company may agree between themselves that the company will limit its activities in
certain ways.
Online Mcq Test
Question 1
Which of the following statements about a company making a contract through agents is correct?
o A company is legally bound by any contract made on its behalf by an agent with
authority.
o A company is only legally bound by a contract made on its behalf by an agent with the
writtenauthority granted under the company seal.
o A company is only legally bound by a contract made on its behalf by an agent if its
constitution expressly allows the appointment of agents.
o A company is only legally bound by a contract made on its behalf by an agent if the agent is
an officer of the company.
Answer: A
Response Feedback:
Question 2
A “special” resolution is one that requires:
o That votes cast in favour of the resolution represent more than 50% of all votes cast by
members present.
o The unanimous consent of all members of the company.
o That votes cast in favour of the resolution represent more than 75% of all votes cast by
members present.
o None of the above.
Answer: C
Response Feedback:
See s 184 of the Companies Act for the definition of special resolution.
Question 3
Which of the following is not a matter typically dealt with by the company's internal governance
rules (articles and memorandum of association)?
o Rules relating to dividends.
o Penalties for breach of the duties owned by directors.
o Rules relating to the transfer and transmission of shares.
o The appointment and removal of the company’s officers.
o The procedure for convening and conducting directors’ and members’ meetings.
Answer: C is wrong
Online Mcq Test
, Response
Feedback: This is not a matter typically dealt with by the company's internal governance
rules; rather, it is a matter addressed by the law.
Question 4
When a new share is issued by a company, the directors will require payment in full of the issue price
by the member. Is this statement:
o True
o False
o True if have money
o False as you need to have all the money
Answer: C is wrong.
Response
Feedback: When a new share is issued by a company, the directors may require payment in
full of the issue price, or may allow the member to pay part of the issue price at the
time of issue.
Question 5
Which of the following cases is not an authority for the proposition that members cannot override the
decisions of the board of directors?
o Automatic Self-Cleansing Filter Syndicate Co Ltd v Cunninghame (1996)
o John Shaw & Sons (Salford) Ltd v Shaw (1935)
o Howard Smith Ltd v Ampol Petroleum Ltd (1974)
Answer: C
Response Feedback:
Question 6
Participants in a company may agree between themselves that the company will limit its activities in
certain ways.
Online Mcq Test
