Question

3.Which of these statements is correct ( select all that apply)

A.Section 194 does not allow the director of a proprietary company to vote on a matter in which he has a material personal interest.

B.A director of a company who has a material personal interest in a matter that relates to the affairs of the company must give the other directors notice of the interest unless an exemption applies.

C.Disclosure must be given at a directors’ meeting as soon as possible after the director becomes aware of their interest in the matter.

D.Section 195 provides that a director who has a material personal interest in a matter being considered by the board of directors’ meeting must not vote on the matter.

4.In corporate law, the proper plaintiff rule means that

A.the directors must take action against themselves.

B.the directors are personally considered as the proper plaintiffs.

C.the company is the proper plaintiff to start an action against a third party.

D.the company cannot sue any of its directors.

Answer 1

Q - 3

Following statements are correct and hence select them: B, C & D

B.A director of a company who has a material personal interest in a matter that relates to the affairs of the company must give the other directors notice of the interest unless an exemption applies.

C.Disclosure must be given at a directors’ meeting as soon as possible after the director becomes aware of their interest in the matter.

D.Section 195 provides that a director who has a material personal interest in a matter being considered by the board of directors’ meeting must not vote on the matter.

Statement A is not true. Section 194 does allow the director to vote if disclosures are met and certain conditions are met.

Q - 4

The correct answer is option C.the company is the proper plaintiff to start an action against a third party.