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CIMAPRA17-BA4-1 Exam - Topic 2 Question 13 Discussion

A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of associationof EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders''.B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?1. Y Company may enforce the contract against EFG Company2. A, C and D may obtain an injunction to stop the contract being canted out3. B may be liable to EFG Company for breach of duty.
A) 1 and 3 only
B) 1 and 2 only
C) 1 only
D) 1,2 and 3

CIMAPRA17-BA4-1 Exam - Topic 2 Question 13 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 13
Topic #: 2
[All CIMAPRA17-BA4-1 Questions]

A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association

of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders''.

B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?

1. Y Company may enforce the contract against EFG Company

2. A, C and D may obtain an injunction to stop the contract being canted out

3. B may be liable to EFG Company for breach of duty.

Show Suggested Answer Hide Answer
Suggested Answer: A

by Portia at May 08, 2022, 10:08 PM

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Frederic
11 months ago
Totally agree with the points about A, C, and D being able to act!
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Ben
11 months ago
Wait, can Y Company really enforce a contract if it’s against the articles? Sounds sketchy.
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Linette
11 months ago
B is totally liable for breach of duty here. No doubt about it!
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Janna
11 months ago
I think Y Company can enforce the contract since they were unaware of the internal rules.
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Lavonna
11 months ago
B acted beyond his authority, so A, C, and D can definitely seek an injunction.
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Malinda
11 months ago
Hmm, I'm a bit confused on the distinction between these two approaches. I'll need to review my notes to see if I can spot the key benefit of SASE over ZTNA.
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Halina
12 months ago
Okay, I think I've got a strategy for this. Option C sounds like the best bet - calling the Apex class method directly from a test method instead of the setup method. That way, the test method can exercise the specific functionality and hopefully improve the code coverage.
upvoted 0 times
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Elbert
12 months ago
I'm not completely sure, but I think when an assert fails, it doesn't automatically consume gas.
upvoted 0 times
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