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CIMA BA4 Exam Questions
BA4 - Fundamentals of Ethics, Corporate Governance and Business Law (Page 10 )

Updated On: 2-Mar-2026
Page 10 of 102
PDF with 661 Questions

The articles of association of Zed Ltd provide that Z is to be an executive director for life.
Zed is also a shareholder in the company.

Which ONE of the following is CORRECT?

  1. Despite the provision in the articles Z can be dismissed at any time by an ordinary

    resolution.
  2. As an executive director Z is an employee of Zed Ltd and is entitled to employment protection rights.
  3. Z may sue the company for breach of contract in respect of the provision in the articles of association as they form a contract between the members and the company.
  4. Z is entitled to vote as a shareholder in relation to a proposed resolution to dismiss him as a director.

Answer(s): C



AB Ltd contracted to deliver two desks and three filing cabinets to CD Ltd. On the day when delivery was due to take place AB Ltd did not have a vehicle with sufficient capacity to hold all the goods. As a result AB Ltd delivered the two desks only

Which of the following is correct?

  1. The contract between AB Ltd and CD Ltd is frustrated.
  2. CD Ltd is legally entitled to refuse delivery of the desks
  3. The failure to deliver the filing cabinets is a breach of a warranty which entitles CD Ltd to claim damages
  4. The delivery of the desks amounts to substantial performance of the contract and CD Ltd is obliged to pay the contract price less an amount for the defects in performance

Answer(s): B



Adam, Brian, Charles and David each held 25% of the issued share capital of ABCD Ltd. Adam has recently issued further shares to himself in order to increase his voting power.
Which of the following is incorrect?

  1. The share issue is automatically invalid.
  2. The shareholders may ratify the share issue by ordinary resolution.
  3. The shareholders may challenge the validity of the share issue using Section 994 of the Companies Act 2006, on the ground that the issue is "unfairly prejudicial to the interests of the shareholders".
  4. The company may proceed against Adam for breach of fiduciary duty.

Answer(s): A



Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

  1. Materiality
  2. Integrity
  3. Objectivity
  4. Professional behavior

Answer(s): A



Which of the following statements are correct?

(i) A claim for unfair dismissal must be made to an industrial tribunal within 3 months of the effective date of termination.

(ii) A claim for wrongful dismissal must be made to an industrial tribunal within 6 years of the effective date of termination.

(iii) A claim for wrongful dismissal must be made to an industrial tribunal within 3 months of the effective date of termination.

  1. (i) and (ii)
  2. (i)
  3. (ii)
  4. (i) and (iii)

Answer(s): A



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