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

10 days 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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Jessenia

12 days 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

17 days 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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Omega

30 days 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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Galen

17 days ago

I agree, option A seems like the safest choice.

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2 months ago

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

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