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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

Contribute your Thoughts:

Xuan
16 days 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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Giuseppe
18 days 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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Eladia
10 days 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
24 days 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
29 days 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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Delmy
30 days 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
1 months ago
I agree with Reuben, because the company can indeed restrict the ability of its directors to contract.
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Reuben
1 months ago
I think the correct statement is C.
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