Discuss CIMA CIMAPRA17-BA4-1 Exam Topic 3 Question 96

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)

Suggested Answer: B

Get Premium CIMAPRA17-BA4-1 Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

38 comments · newest first

Alex 11 months ago

Yep, all three statements are correct!

Stephanie 11 months ago

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

Rueben 11 months ago

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

Sherly 12 months ago

Totally agree, that’s a must!

Refugia 12 months ago

Public companies need that trading certificate to start trading.

Leonard 1 year 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.

Jennifer 1 year 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.

Andrew 1 year 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.

Ammie 1 year ago

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

Carline 1 year 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.

Cordelia 1 year 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.

Yuriko 1 year 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.

Veronika 1 year 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.

Francine 1 year ago

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

Avery 1 year 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.

Ilona 1 year 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.

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!

Tresa 1 year ago

↳ replying to James

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

Florinda 1 year ago

↳ replying to James

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

Shawna 1 year ago

↳ replying to James

A) (i) and (ii) only

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.

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.

Melvin 1 year ago

↳ replying to Anglea

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

Sonia 1 year ago

↳ replying to Anglea

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

Javier 1 year ago

↳ replying to Anglea

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

Belen 1 year ago

↳ replying to Anglea

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

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!

Micaela 1 year ago

↳ replying to Omega

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

Muriel 1 year ago

↳ replying to Omega

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

Galen 1 year ago

↳ replying to Omega

I agree, option A seems like the safest choice.

Daniela 2 years 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!

Serina 1 year ago

↳ replying to Daniela

Absolutely, better safe than sorry when it comes to legal matters. Let's make sure we have everything in order.

Cathern 1 year ago

↳ replying to Daniela

I'll definitely do some more research to confirm everything. We don't want to be held liable for any obligations.

Casie 1 year ago

↳ replying to Daniela

Yeah, I agree. It's important to make sure we meet all the legal requirements before starting to trade.

Leslee 1 year ago

↳ replying to Daniela

I think option D is the correct one. All three statements seem to be accurate for a public company limited by shares.

Terrilyn 2 years ago

I believe the correct answer is (i), (ii) and (iii). A public company must have at least one shareholder.

Melvin 2 years ago

I agree with Leah. If a public company starts trading without a certificate, the directors can be held liable.

Leah 2 years ago

I think the correct statement is (i) and (ii) only.

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