Discuss CIMA CIMAPRA17-BA4-1 Exam Topic 5 Question 111

Which of the following is incorrect?

AThe first directors are appointed upon the incorporation of the company.

BSubsequent directors are appointed according to the rules set down in the company's Memorandum of Association.

CA director is a person who occupies the position of director by whatever name called.

DA shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

Suggested Answer: B

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34 comments · newest first

Octavio 10 months ago

D seems a bit tricky, what’s a shadow director exactly?

Shad 10 months ago

Totally agree, that’s how it works!

Chau 11 months ago

C is spot on, directors can have different titles.

Leonora 11 months ago

Wait, are you sure about B? Sounds off to me.

Kayleigh 11 months ago

A is correct, first directors are appointed at incorporation.

Sharan 11 months ago

D sounds right to me based on what we studied about shadow directors, but I can't shake the feeling that there might be a nuance I'm missing.

Lenna 12 months ago

I'm a bit confused about C. I remember discussing how a director can be called different names, but does that really make it correct?

Fausto 12 months ago

I feel like I've seen a similar question before, and I thought the first directors are indeed appointed at incorporation, so A seems correct to me.

Donette 12 months ago

I think option B might be the one that's incorrect, but I'm not entirely sure. I remember something about the Articles of Association being more relevant for appointing directors.

Kip 1 year ago

This seems straightforward. I'm going to eliminate the options that are clearly correct based on my understanding, and then focus on the one that seems potentially incorrect.

Eura 1 year ago

I'm a bit confused by the wording of these options. I'll need to review my notes on company law to make sure I understand the key concepts before selecting an answer.

Vallie 1 year ago

Okay, I'm pretty confident I know the correct answer here. I'll double-check the details, but I think option B is incorrect.

Jutta 1 year ago

Hmm, this looks like a tricky question. I'll need to carefully read through each option and think about the legal definitions of directors and their appointment.

Clay 1 year ago

I think D is incorrect because a company secretary must be appropriately qualified.

Marshall 1 year ago

But a company secretary is an officer, not an employee.

Cristal 1 year ago

B is just asking for trouble. Imagine being stuck with the same company secretary for life - yikes! Talk about a nightmare scenario.

Christa 1 year ago

↳ replying to Cristal

C) A company secretary is an officer and not an employee of the company

Renea 1 year ago

↳ replying to Cristal

A) A company secretary may be dismissed by the board

France 1 year ago

C is a bit of a head-scratcher. I mean, aren't company secretaries technically employees of the company? Seems like a tricky one.

Earleen 1 year ago

↳ replying to France

C) A company secretary is an officer and not an employee of the company

Daniel 1 year ago

↳ replying to France

B) A person may be appointed company secretary for life

Michel 1 year ago

↳ replying to France

A) A company secretary may be dismissed by the board

Irma 1 year ago

D seems like the correct answer to me. A public company's secretary should have the necessary qualifications.

Irving 1 year ago

↳ replying to Irma

A is the incorrect option. A company secretary cannot be dismissed by the board.

Yesenia 1 year ago

↳ replying to Irma

C is the incorrect option. A company secretary is both an officer and an employee of the company.

Jacquelyne 1 year ago

↳ replying to Irma

I think B is incorrect. No one can be appointed company secretary for life.

Chauncey 1 year ago

↳ replying to Irma

I agree, D is the correct answer. A company secretary of a public company must be appropriately qualified.

Curtis 1 year ago

I think A is the wrong answer here. The board should have the power to dismiss the company secretary if needed.

Mari 1 year ago

I disagree, I believe C is the incorrect statement.

Tyisha 1 year ago

Option B is definitely incorrect. A company secretary cannot be appointed for life, that's just absurd!

Derick 1 year ago

↳ replying to Tyisha

C: Actually, I believe the incorrect statement is D. A company secretary of a public company must be appropriately qualified.

Harris 1 year ago

↳ replying to Tyisha

B: I think the correct answer is C. A company secretary is an officer, not an employee.

Mona 1 year ago

↳ replying to Tyisha

A: I agree, option B is definitely incorrect. No one can be appointed company secretary for life.

Marshall 1 year ago

I think B is incorrect.

CIMAPRA17-BA4-1 Exam - Topic 5 Question 111 Discussion