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Return to Company Law 2e Resources
Chapter 10 Self-test questions
*
not completed
.
The duties found in ss 161-177 of the CA 2006 are referred to in the Act as?
Codified duties
correct
incorrect
General duties
correct
incorrect
Statutory duties
correct
incorrect
Executive duties
correct
incorrect
*
not completed
.
Identify which one of the following statements is untrue.
The general duties are owed by a director to the company
correct
incorrect
The general duties can be owed by persons who are not directors
correct
incorrect
Only directors owe general duties
correct
incorrect
The general duties can apply to shadow directors
correct
incorrect
*
not completed
.
A breach of duty can be avoided in several ways. Which one of the following methods will not generally be effective?
A provision in the articles excluding a director's liability for breach of duty
correct
incorrect
Where the members provide authorisation for the directors' breach
correct
incorrect
Where the director's breach is ratified.
correct
incorrect
Where the director is granted relief by the court.
correct
incorrect
*
not completed
.
Section 171 contains two duties. Identify these two duties.
To promote the success of the company
correct
incorrect
To exercise powers only for the purposes for which they are conferred
correct
incorrect
To act with reasonable care and skill
correct
incorrect
To promote the success of the company
correct
incorrect
To disclose an interest in any transaction involving the company
correct
incorrect
To act in accordance with the company's constitution
correct
incorrect
To avoid conflicts of interest
correct
incorrect
To act in accordance with the instructions of the members
correct
incorrect
To act with independent judgment
correct
incorrect
*
not completed
.
The duty to exercise powers for the purposes for which they are conferred is subject to a four-part test. Which one of the following is not a part of this test?
The court will determine the proper purpose for which the power was delegated to the directors
correct
incorrect
The court will decide whether the purpose for which the power was exercised, was proper
correct
incorrect
The court will determine what power is being exercised
correct
incorrect
The court will determine whether there were more proper purposes than improper purposes
correct
incorrect
The court will determine the substantial purpose for which the power was in fact exercised
correct
incorrect
*
not completed
.
The duty imposed by s 172 of the CA 2006 is entirely subjective.
True
correct
incorrect
False
correct
incorrect
*
not completed
.
The s 172(1) duty requires directors to 'have regard' to a range of factors. Which one is not a factor listed in s 172(1)?
The need to foster business relationships with suppliers, customers and others
correct
incorrect
The interests of the company's creditors
correct
incorrect
The desirability of the company maintaining a reputation for high standards of business conduct
correct
incorrect
The likely consequences of any decision in the long term
correct
incorrect
The need to act fairly as between the company's members
correct
incorrect
The interests of the company's employees
correct
incorrect
The impact of the company's operations of the environment
correct
incorrect
*
not completed
.
Section 173 requires a director to be independent. True or false?
True
correct
incorrect
False
correct
incorrect
*
not completed
.
Regarding the s 174 duty, which one of the following statements is correct?
The s 174 duty imposes a subjective test
correct
incorrect
The s 174 duty imposes an objective test
correct
incorrect
The s 174 imposes a subjective and objective test
correct
incorrect
*
not completed
.
A director who takes no part in the company's business cannot be found liable for breach of s 174
True
correct
incorrect
False
correct
incorrect
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