CIMA Exam CIMAPRA17-BA4-1 Topic 7 Question 75 Discussion

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

Question #: 75
Topic #: 7

Z Ltd intends to participate in a "substantial property transaction" with one of its directors. Which of the following is correct in relation to substantial property transactions?

(i) The value of the asset must exceed 10% of the company's net assets and be more than 5,000.

(ii) The transaction must be approved by the shareholders.

(iii) The director must disclose his interest in the transaction.

A(i) only

B(i) and (ii) only

C(i) and (iii) only

D(i), (ii) and (iii)

Show Suggested Answer

Suggested Answer: A, B, C

by Leota at Oct 06, 2023, 06:05 PM

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Annmarie

2 days ago

I'm not sure, but I think it's important for the director to disclose their interest in the transaction to avoid any conflicts of interest.

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Sherly

3 days ago

I think the correct answer is (i), (ii) and (iii). All three conditions must be met for a substantial property transaction with a director.

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Marget

8 days ago

I agree with Earlean, it makes sense that all conditions need to be fulfilled to ensure transparency and fairness.

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Earlean

17 days ago

I think the answer is D, because all three conditions must be met for a substantial property transaction.

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