CIMA Exam CIMAPRA17-BA4-1 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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James

3 months 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

2 months ago

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

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Florinda

2 months ago

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

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Shawna

2 months ago

A) (i) and (ii) only

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Jessenia

3 months 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

3 months 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

2 months ago

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

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Sonia

2 months ago

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

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Javier

2 months ago

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

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Belen

3 months ago

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

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Omega

4 months 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

2 months ago

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

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Muriel

2 months ago

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

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Galen

3 months ago

I agree, option A seems like the safest choice.

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Daniela

4 months 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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Serina

2 months ago

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

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Cathern

2 months ago

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

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Casie

3 months ago

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

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Leslee

3 months ago

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

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Terrilyn

4 months ago

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

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Melvin

4 months ago

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

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Leah

5 months ago

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

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