Tutorial 6

KOLEJ PROFESSIONAL MARA AYER MOLEK

COMPANY LAW (LAW2513)

TUTORIAL 6 – NATURE AND FORMATION OF COMPANY

1.       Under the Companies Act 1965, a company is duly incorporated and come into existence from the date of_____.

      A.            reservation of the company’s name

      B.            stated in the certificate of incorporation

      C.            the stamp duty is paid

      D.           lodging the memorandum and article to the Registrar of Company       

2.       Which of the following describes the concept of separate legal personality of the company?

A.       the member and the company are liable for the company’s debts

B.       the member of the company can take action on behalf of the company

C.       the member and the company are two separate person

D.       the member and the company are one and the same

3.       In which of the following statement is a correct statement in relation to company?

A.            A company is a person separate from its members

B.            A company need to register their business under the Registration of Business Act 1956

C.            A company may be dissolved informally

D.       A company is a natural person 

4.       Which of the following describes the concept of separate legal personality of the company?

A.       The member and the company are one and the same.

B.       The member and the company are two separate persons.

C.       The members of the company can take actions on behalf of the company

D.       The members of the company are liable for the company’s debt

5.      

A company formed on the principle of having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.

The statement above can be described as…

A.       Company limited by guarantee

B.       Company limited by shares

C.       Unlimited companies

D.       Private Company

6.       When a company is duly incorporated and comes into existence, the effects are:

          I.       An artificial person is born out of the process of law

          II.      The company’s assets belong to the members collectively

          III.     The company can use its own name to enter into transactions

          IV.      Change among the shareholders would require the transfer of the company’s assets

          A.       I & II

          B.       II & III

          C.       I & III

          D.       II & IV

7.       The liability of a member of a company limited by shares will depend on _________.

          A.       whether his shares are fully paid or not

          B.       whether his shares are transferable or not

          C.       whether he is the promoter of the company or not

          D.       whether he is one of the company’s board of director or not

8.       “A company formed on the principles of having no limit placed on the liability of its member. In a winding up, the members of this company is liable for the debts of the company without limit if the company’s assets are not sufficient”.

The above statement can be defined as ..

A.    company limited by guarantee

B.    company limited by shares

C.    unlimited companies

D.   private Company

9.       According to section 15(1), Companies Act 1965, a company is classified as a private company if its memorandum or articles;

I.             restrict the right to transfer shares

II.           limit the number of members to not more than 50

III.         prohibit any invitation or offer to the public to subscribe for shares in or debentures of the company

IV.          prohibit any invitation to the public to deposit money with the company

A.            I, II

B.            I, II, III

C.            II, III, IV

D.           I, II, III & IV

10.     The liability of a member of this company will depend on whether his shares are fully paid or not. If he holds fully paid shares, he has no further liability to the company.

          This statement refers to                .

A.            a company limited by guarantee

B.            a company limited by shares

C.            an unlimited company

D.           a company limited by shares and guarantee

11.     What is the legislation that governs companies in Malaysia?

 A.            Companies Act, 1965.

B.            Partnership Act, 1961.

C.            Registration of Business Act, 1956.

D.           Companies Comission of Malaysia.

12.     An exempt private company is exempted from the following statutory provisions:

I.       Making loans to its director.

II.      Preparing a balance sheet and a profit and loss account for their shareholders.

III.     Filing a balance sheet and a profit and loss account for their shareholders with the Companies Commission Malaysia.

IV.      Having a membership more than twenty persons.

A.           I and II.

B.           I and III.

C.           II and IV.

D.           I, II and III.

13.     There are ___________ types of a company that can be classified according to its liability.

A.       two.

B.       three.

C.       four.

D.       five.

14.     To what extent does a shareholders in a company limited by share liable when the company is wound up?

A.            Shareholders’ liability is limited to the amount of unpaid shares that he holds.

B.            Shareholders are liable to the full extent of those debts.

C.            Shareholders have unlimited liability.

D.           Shareholders are liable for an equal proportion of those debts.