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CIMAPRA17-BA4-1 Exam - Topic 11 Question 60 Discussion

The articles of association of Zed Ltd provide that Z is to be an executive director for life. Zed is also a shareholder in the company.Which ONE of the following is CORRECT?
C) Z may sue the company for breach of contract in respect of the provision in the articles of association as they form a contract between the members and the company.
A) Despite the provision in the articles Z can be dismissed at any time by an ordinary resolution.
B) As an executive director Z is an employee of Zed Ltd and is entitled to employment protection rights.
D) Z is entitled to vote as a shareholder in relation to a proposed resolution to dismiss him as a director.

CIMAPRA17-BA4-1 Exam - Topic 11 Question 60 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 60
Topic #: 11
[All CIMAPRA17-BA4-1 Questions]

The articles of association of Zed Ltd provide that Z is to be an executive director for life. Zed is also a shareholder in the company.

Which ONE of the following is CORRECT?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Lashon at Oct 24, 2022, 01:17 PM

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Susana
10 months ago
Not sure about that breach of contract thing... sounds complicated!
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Shelia
10 months ago
Z should have some voting rights as a shareholder, right?
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Mohammad
10 months ago
Wait, can he really be fired if he's a director for life?
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Blondell
11 months ago
I agree, the articles don't protect him from that.
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Isadora
11 months ago
Z can definitely be dismissed by an ordinary resolution.
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Willodean
11 months ago
I think D could be tricky because it seems like Z shouldn't vote on his own dismissal, but I can't recall the exact rules.
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Arminda
11 months ago
I feel like we covered a similar question about director dismissal, and I think A might be misleading since the articles say Z is for life.
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Cyndy
11 months ago
I'm not entirely sure, but I think executive directors have some employment rights, which might make B the right choice.
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Wynell
11 months ago
I remember discussing how articles of association can create binding contracts, so maybe C is correct?
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Alyce
11 months ago
Okay, the question is asking for the sensitivity, which is the true positive rate. I think I can figure this out by looking at the values in the matrix and doing some basic math.
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Glen
11 months ago
The correlation impacts diversification benefits. A higher correlation will reduce risk reduction from combining these stocks.
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Chandra
1 year ago
This question is a real brain-teaser. I bet Z is just sitting back, sipping on a margarita, and laughing at all the poor souls trying to figure this out.
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Cecilia
1 year ago
If Z is a shareholder, then he should definitely be able to vote on his own dismissal. Option D is the way to go, no doubt about it.
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Paola
1 year ago
Option D is the correct choice for sure.
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Annice
1 year ago
Yes, Z is entitled to vote as a shareholder in that situation.
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Zona
1 year ago
I agree, Z should definitely be able to vote on his own dismissal.
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Breana
1 year ago
Hang on, this guy Z is an executive director for life? That's wild! I wonder if he's got some dirt on the other shareholders or something. Option D is probably the way to go, though.
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Justine
1 year ago
Definitely, it's all about transparency and accountability in a company. Z should have a voice in what happens to him as a director.
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Shayne
1 year ago
I agree, option D seems fair. It's important for shareholders to have a say in decisions like that.
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Lashaun
1 year ago
Yeah, it's pretty crazy that Z is an executive director for life. I think option D makes sense, he should be able to vote on his own dismissal.
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Geoffrey
1 year ago
I'm not too sure about this one. As an executive director, Z is an employee, so option B might be correct and he could have some employment protection rights.
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Keva
1 year ago
C) Z may sue the company for breach of contract in respect of the provision in the articles of association as they form a contract between the members and the company.
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Johnathon
1 year ago
A) Despite the provision in the articles Z can be dismissed at any time by an ordinary resolution.
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Kimi
1 year ago
Option C seems like the most logical choice. The articles of association are a contract between the company and its members, so Z should be able to sue for breach of contract if they try to dismiss him.
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Sommer
1 year ago
But doesn't the provision in the articles of association create a contract between the members and the company?
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Ryan
1 year ago
I disagree, I believe the correct answer is D.
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Sommer
1 year ago
I think the correct answer is C.
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