CIMAPRA17-BA4-1 Exam - Topic 3 Question 96 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 96
Topic #: 3

Which of the following statements is correct in relation to a public company limited by shares?

(i) A public company cannot commence trading until it has received a certificate from the Registrar of Companies confirming that it has satisfied the minimum requirements as to authorized and issued share capital.

(ii) If a public company commences trading without a trading certificate, and fails to meet its obligations, the directors may be held jointly and severally liable for those obligations.

(iii) A public company must have a minimum of one shareholder.

A(i) and (ii) only

B(ii) and (iii) only

C(i) and (iii) only

D(i), (ii) and (iii)

Show Suggested Answer

Suggested Answer: B

by Cordelia at Sep 06, 2024, 10:48 PM

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Alex

6 months ago

Yep, all three statements are correct!

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Stephanie

6 months ago

I thought one shareholder was enough for any company, not just public ones.

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Rueben

6 months ago

Wait, can directors really be held liable like that? Sounds risky!

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Sherly

7 months ago

Totally agree, that’s a must!

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Refugia

7 months ago

Public companies need that trading certificate to start trading.

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Leonard

7 months ago

I thought (i) and (iii) were both correct, but I'm not confident about (ii). It seems like a tricky part of company law.

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Jennifer

7 months ago

I feel like (iii) is also correct since every public company must have at least one shareholder. I just can't recall if it's more than that.

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Andrew

8 months ago

I'm not entirely sure about (ii), but I think directors can be held liable if they trade without the certificate. That sounds familiar from our case studies.

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Ammie

8 months ago

I remember that a public company needs a trading certificate before it can start trading, so I think (i) is definitely correct.

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Carline

8 months ago

I feel confident about this one. The correct answer is (D) - all three statements are true in relation to a public company limited by shares.

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Cordelia

8 months ago

(i) and (ii) seem plausible, but I'm not sure about (iii). I'll need to double-check the legal requirements for public companies.

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Yuriko

8 months ago

Okay, I think I've got this. The key is to identify which combination of the three statements is accurate based on the information provided.

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Veronika

8 months ago

Hmm, I'm a bit unsure about the requirements for a public company to commence trading. I'll need to carefully review the statements to determine which one is correct.

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Francine

8 months ago

This question seems straightforward, but I want to make sure I understand the key details about public companies before selecting an answer.

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Avery

8 months ago

Hmm, I'm a bit confused on this one. I know import and export policies have something to do with how traffic is handled, but I'm not sure of the specifics. I'll need to re-read the material on this topic.

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Ilona

8 months ago

I'm a bit confused by this question. The options seem similar, so I'll need to really focus on the details to figure out which one is not an explanation for the increase in receivables days.

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James

1 year ago

Hmm, this is a tough one. I'll just spin the wheel and hope for the best. After all, that's how I passed my driving test!

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Tresa

11 months ago

I agree, let's go with A) (i) and (ii) only.

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Florinda

11 months ago

I think it's A) (i) and (ii) only.

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Shawna

11 months ago

A) (i) and (ii) only

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Jessenia

1 year ago

Option D all the way! Gotta love those comprehensive answers. Although, who came up with that 'minimum one shareholder' rule? Clearly, they never met my aunt Gertrude.

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Anglea

1 year ago

Ha! I bet the correct answer is (ii) and (iii) - one shareholder? Really? That's gotta be a trick question. I'm going with option B, for sure.

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Melvin

11 months ago

Well, we'll just have to wait and see which option is the correct one.

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Sonia

11 months ago

I see your point, but I still think (ii) and (iii) are the correct statements.

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Javier

12 months ago

I'm not so sure, I think (i) and (ii) make more sense in this context.

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Belen

12 months ago

I think you might be onto something there, (ii) and (iii) do seem more likely.

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Omega

1 year ago

Hmm, (i) and (ii) sound right to me. Better play it safe and go with option A. Don't want to end up liable for anything as a director!

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Micaela

11 months ago

Let's go with option A then, better safe than sorry.

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Muriel

12 months ago

Yeah, I don't want to risk being held liable for any obligations.

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Galen

1 year ago

I agree, option A seems like the safest choice.

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Daniela

1 year ago

Option D seems legit. All three statements are correct for a public company limited by shares. I better double-check the legal requirements, though. Can't afford to mess this up!

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