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Zed Ltd was incorporated in 2010 and has chosen to use the standard Model Articles of Association. The company is considering appointing Max as a director of the company.

Which of the following is incorrect?

(i) Max cannot be a director of the company unless he holds shares in the company.

(ii) Max cannot be a director of the company if he is an undischarged bankrupt.

(iii) Max cannot be a director of the company if he is subject to a disqualification order.

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

Answer(s): A



Which of the following is INCORRECT in relation to the board of directors of a private company limited by shares?

  1. The board reaches its decisions by majority vote
  2. The board cannot delegate its authority
  3. The board may reach a decision by written resolution
  4. If there are an equal number of votes for and against a proposal before the board the negative views prevail and the proposed resolution is defeated

Answer(s): B



Which of the following countries does not have a written constitution?

  1. The United Kingdom
  2. Poland
  3. Germany
  4. Italy

Answer(s): A



Which of the following types of board committee are recommended by the UK Corporate Governance Code?

(i) Nomination Committee

(ii) Audit Committee

(iii) Quality Assurance Committee

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

Answer(s): C






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