BAC304/05

Index Number: ________

Specimen Paper

BAC304/05 Company Law

Time: 3 hours

Instructions to candidates:
1. Please check that this examination paper consists of three (3) pages of printed
material before you begin the examination.
2. This paper consists of 2 parts.
Part A: Answer ALL questions in the answer booklet provided.
Part B: Answer any TWO (2) questions in the answer booklet provided.
You should allow yourself approximately 110 minutes in total to answer the
questions in Part A and the remaining 70 minutes for the questions to be
attempted in Part B.
3. You are not allowed to remove this question paper from the examination venue.

Copyright Specimen WOU

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BAC304/05

Part A (60 marks)

Short Answer Questions
Answer ALL questions. Each question carries 10 marks. Illustrate your
answers with relevant case law and legislation.

1. What are the characteristics of a private company?

2. Briefly describe the doctrine of maintenance of share capital.
3. State the advantages to a company to create a floating charge.
4. What are the qualifications for a person to be a company secretary? Make
reference to the Companies Act, 1965.
5. How could a director be removed from his or her directorship in a company?
6. Briefly describe the effects of a receivers appointment in a company.

Part B (40 marks)

Essay and Problem Solving Questions
Answer any TWO (2) questions. Each question carries 20 marks. Illustrate your
answers with relevant case law and legislation.
Question 1
May works in a company as Company Secretary after completed her Bachelor in
Business major in Corporate Administration. The Board of Directors of the company
wish to know what is meant by the phrase alteration of shares and ask May to
highlight the procedure involved if shares are to be increased.
(20 marks)
Question 2
A and B have an initial capital of RM2 million but they estimated that the business
would require a capital of RM6 million. Their relatives and friends are willing to invest
in the business but A and B wish to be in control in terms of decision making and
voting power. They intend to manufacture parts for foreign cars within two years after
their operation.

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BAC304/05

They seek your advice on the following:

(a) What form of business organisation would be most appropriate for them? Give
reasons for your answer.
(10 marks)
(b) What can they do when they require more capital to expand their business to
manufacture parts for foreign cars in two years time?
(10 marks)

Question 3
Public Sdn. Bhd. has been facing financial difficulties eight months ago. It recently
defaulted in the repayment of a loan and the court has appointed a receiver. Harris is
one of the directors of Public Sdn. Bhd. He wishes to know the effects (if any) of an
appointment of a receiver on:
(a) the powers of the directors in the company; and
(10 marks)
(b) the contracts of employment of the companys employees.
(10 marks)

END OF SPECIMEN PAPER

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