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CIMA Exam CIMAPRA17-BA4-1 Topic 1 Question 99 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 99
Topic #: 1
[All CIMAPRA17-BA4-1 Questions]

Which of the following statements is correct in relation to the ability of a company to contract?

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Suggested Answer: D

by Angelica at Sep 15, 2024, 12:48 PM

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Xuan
11 months ago
I'm going with C as well. It's the only option that really captures how companies can limit their directors' contracting powers.
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Margarita
10 months ago
C) 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
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Charlie
10 months ago
B) 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.
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Lashawna
10 months ago
A) 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.
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Giuseppe
11 months ago
Haha, option D is a classic case of 'too little, too late'. If the shareholders can't stop the directors, what's the point of having those restrictions in the first place?
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Arminda
9 months ago
Haha, option D is a classic case of 'too little, too late'. If the shareholders can't stop the directors, what's the point of having those restrictions in the first place?
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Lili
10 months ago
C) 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
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Audra
10 months ago
B) 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.
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Eladia
10 months ago
A) 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.
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Lashon
11 months ago
Option B seems a bit off to me. Shareholders don't have the ability to directly enter into contracts on behalf of the company, that's the directors' job.
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Delfina
11 months ago
I think option C is the correct answer. Companies can definitely restrict their directors' ability to enter into certain contracts by placing those restrictions in their articles of association.
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Jerry
10 months ago
It's crucial for shareholders to be aware of the restrictions placed on directors in order to ensure that the company operates within the boundaries set by its articles of association.
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Tula
10 months ago
That's true, it's important for companies to have clear guidelines in place to regulate the actions of their directors when it comes to contracting.
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Ozell
10 months ago
I agree, option C is the correct answer. Companies can definitely restrict their directors' ability to enter into certain contracts by placing those restrictions in their articles of association.
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Delmy
11 months ago
But what about option A? It also makes sense because if the directors ignore restrictions, outsiders shouldn't be able to enforce the contract.
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Ettie
11 months ago
I agree with Reuben, because the company can indeed restrict the ability of its directors to contract.
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Reuben
11 months ago
I think the correct statement is C.
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