BA4 Exam Dumps : Fundamentals of Ethics, Corporate Governance and Business Law

The company must pass a special resolution to authorize the reduction of capital.

The reduction must be approved by the court.

It is not necessary for the company’s Articles of Association to authorize a reduction of capital.

The directors must make a solvency statement.

If a company has restricted the ability of its directors to contact and the directors ignore the restrictions, then the outsiders may not enforce the contract.

The shareholders of a company have the ability to enter into a contract on behalf of the company, irrespective of any restrictions on the directors.

If a company wishes to restrict the ability of its directors to enter into particular contracts it may do so by placing restrictions on the directors in its

articles of association

If the shareholders learn that the directors are about to ignore the restrictions placed upon their ability to contract by the company the shareholders are unable to prevent the directors from proceeding

A handshake

A signed formal document

A verbal declaration

Any of the above