CIMAPRA17-BA4-1 Exam - Topic 4 Question 74 Discussion

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

Question #: 74
Topic #: 4

Which of the following is INCORRECT in relation to directors' duties?

i. Directors who arrange for shares to be offered directly to their supporters in order to prevent a take-over bid are acting lawfully so long as they have the legal power to allot shares in the company's constitution.

ii. Directors may act in breach of their duties and still be complying with the UK Corporate Governance Code.

iii. Directors' duties are owed to the shareholders as a body and enforceable by the company.

A(i) only

B(i) and (ii) only

C(ii) only

D(ii) and (iii) only

Show Suggested Answer

Suggested Answer: B

by Leonida at Sep 03, 2023, 01:57 PM

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Gerald

6 months ago

Sounds fishy, how can they act unlawfully and still be compliant?

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Jeannetta

6 months ago

I thought directors had to prioritize shareholder interests.

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Ollie

7 months ago

Wait, can they really breach duties and still follow the Code?

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Alexis

7 months ago

Totally agree, that's how it works!

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Ernie

7 months ago

Directors can legally allot shares if allowed by the company's constitution.

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Willow

7 months ago

I practiced a similar question before, and I think (i) is the one that could be incorrect. It just feels off to me, but I can't pinpoint why.

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Derick

8 months ago

I feel like (iii) is definitely true since directors owe their duties to the shareholders, but I can't recall if it's enforceable by the company itself.

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Refugia

8 months ago

I think (ii) might be the tricky one here. We talked about how compliance with the UK Corporate Governance Code doesn't always mean they're acting within their duties.

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Caitlin

8 months ago

I remember discussing directors' duties in class, but I'm not entirely sure if (i) is correct or not. It seems like it could be lawful if they have the power.

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Silvana

8 months ago

This is a good test of my knowledge on directors' duties. I'll need to apply the legal principles carefully to identify the incorrect statement.

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Dolores

8 months ago

The key here is understanding the relationship between directors' duties and the UK Corporate Governance Code. I'll need to think about how those two elements interact.

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Florinda

8 months ago

Okay, I think I've got a handle on this. Let me walk through the options and see if I can spot the incorrect one.

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Jerilyn

8 months ago

Hmm, the wording on these options is tricky. I'll need to carefully analyze each one to determine which is incorrect.

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Kayleigh

8 months ago

This question seems straightforward, but I want to make sure I understand the nuances of directors' duties before answering.

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Evelynn

8 months ago

The key here is understanding the difference between the legal requirements and the governance code. I think the second statement is the one that's incorrect, since directors can breach their duties even if they're complying with the code.

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Frederica

8 months ago

Wait, I'm a bit confused. Aren't directors' duties always owed to the shareholders? I'm not sure about that second statement.

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Merrilee

8 months ago

I feel pretty confident about this one. I think the answer is (ii) and (iii) only, since directors can breach their duties even if they're following the governance code, and their duties are owed to the company, not just the shareholders.

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Dortha

8 months ago

Okay, let's see here. The first statement seems a bit iffy, but I'm not totally sure. The second one is the one that's really got me stumped.

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Pearlie

8 months ago

Hmm, this question seems tricky. I'll need to carefully read through the options and think about the key principles of directors' duties.

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Eladia

8 months ago

Hmm, I'm not too sure about this one. The question mentions a large amount of historical data, so I'm thinking the SOAP API or an AppExchange package might be better options to consider. I'll need to review the differences between the choices more carefully.

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Brice

8 months ago

The question about the data center location is a good catch. I think that's a key factor in determining their GDPR compliance requirements. I'll make sure to consider that carefully in my answer.

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Dottie

8 months ago

This seems like a pretty standard repository management question. I think the key is using the repos.py command with the right options. I'll make sure to read through the answer choices carefully and select the correct steps.

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Marget

1 year ago

Hmm, I'm not sure about (ii) and (iii). The governance code and shareholder duties can be a bit of a minefield. Better double-check my notes before answering this one.

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Kati

12 months ago

User 3: Yeah, (ii) doesn't sound right. Better make sure before answering.

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Jerry

12 months ago

User 2: I agree, (ii) seems off. They have to follow their duties and the code.

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Kristel

12 months ago

User 1: I think (ii) is incorrect, directors can't breach their duties and still comply with the code.

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Elenore

1 year ago

Haha, this question is a real test of whether you've been paying attention in your corporate law classes. I'd say (ii) and (iii) are the tricky ones - gotta keep those directors on their toes!

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Lindsey

1 year ago

D) (ii) and (iii) only

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Sharita

1 year ago

C) (ii) only

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Ernie

1 year ago

B) (i) and (ii) only

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Adell

1 year ago

A) (i) only

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Aja

1 year ago

Hmm, that's a good point. But I still think option A is the best choice.

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Yuriko

1 year ago

I disagree, I believe option B is correct because directors can still breach their duties while following the UK Corporate Governance Code.

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Ben

1 year ago

I agree, (i) is the wrong answer here. Trying to entrench your position as a director by manipulating the share structure is a big no-no.

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Octavio

1 year ago

User 2

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Vallie

1 year ago

User 1

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Aja

1 year ago

I think option A is correct because directors can allot shares if they have the legal power.

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Albina

1 year ago

Option (i) is clearly incorrect. Arranging a share issue to prevent a takeover is a classic example of directors acting in their own interests rather than the company's. That's a breach of their duties.

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