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

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 75
Topic #: 7
[All CIMAPRA17-BA4-1 Questions]

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.

Show Suggested Answer Hide Answer
Suggested Answer: A, B, C

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

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Rex
1 months ago
I'm just here for the free snacks during the break. Substantial property transactions? More like substantial confusion if you ask me!
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Malinda
3 days ago
I agree, it can be confusing. But it's important to follow the rules to avoid any issues.
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Lacey
5 days ago
I'm glad I'm not the only one confused about this. But at least we get free snacks!
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Dominic
7 days ago
C) (i) and (iii) only
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Rashida
8 days ago
Yes, that's correct. It's one of the requirements for substantial property transactions.
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Sheridan
12 days ago
A) (i) only
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Ciara
16 days ago
I think the director has to disclose his interest in the transaction.
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Melinda
2 months ago
B has got to be the way to go. I mean, who cares about the director's interest, right? As long as the numbers check out and the shareholders approve, it's all good. What could possibly go wrong?
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Kenneth
1 months ago
C) (i) and (iii) only
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Ilene
1 months ago
B) (i) and (ii) only
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Pete
1 months ago
A) (i) only
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Merissa
2 months ago
Hmm, I'm going with C. The value threshold and director disclosure are important, but maybe the shareholders don't need to be involved if it's a small-ish transaction, you know? Gotta keep those board meetings short and sweet!
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Paola
2 months ago
Easy peasy, it's D! A director can't just go around making big deals without shareholder approval and disclosing their interest. That's like the corporate version of a magic trick - everyone would see right through it!
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Tequila
8 days ago
So, it's not just about the director's personal interests, but also about the company's overall well-being.
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Clorinda
16 days ago
Exactly, shareholders have a right to know and approve of major deals involving directors.
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Peter
1 months ago
Yeah, it's important for transparency and to protect the interests of the company and shareholders.
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Craig
1 months ago
I think it's D too. Directors need to follow the rules when it comes to big transactions.
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Annmarie
2 months 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
2 months 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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Nakisha
1 months ago
Yes, the value of the asset must exceed 10% of the company's net assets, be more than 5,000, approved by shareholders, and the director must disclose his interest.
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Chandra
1 months ago
I agree, all three conditions must be met for a substantial property transaction.
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Marget
2 months 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
3 months ago
I think the answer is D, because all three conditions must be met for a substantial property transaction.
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