CIMA Exam CIMAPRA17-BA4-1 Topic 11 Question 60 Discussion

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

Question #: 60
Topic #: 11

The articles of association of Zed Ltd provide that Z is to be an executive director for life. Zed is also a shareholder in the company.

Which ONE of the following is CORRECT?

ADespite the provision in the articles Z can be dismissed at any time by an ordinary resolution.

BAs an executive director Z is an employee of Zed Ltd and is entitled to employment protection rights.

CZ may sue the company for breach of contract in respect of the provision in the articles of association as they form a contract between the members and the company.

DZ is entitled to vote as a shareholder in relation to a proposed resolution to dismiss him as a director.

Show Suggested Answer

Suggested Answer: C

by Lashon at Oct 24, 2022, 01:17 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA4-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Chandra

1 months ago

This question is a real brain-teaser. I bet Z is just sitting back, sipping on a margarita, and laughing at all the poor souls trying to figure this out.

upvoted 0 times

...

Cecilia

2 months ago

If Z is a shareholder, then he should definitely be able to vote on his own dismissal. Option D is the way to go, no doubt about it.

upvoted 0 times

Paola

7 days ago

Option D is the correct choice for sure.

upvoted 0 times

...

Annice

14 days ago

Yes, Z is entitled to vote as a shareholder in that situation.

upvoted 0 times

...

Zona

18 days ago

I agree, Z should definitely be able to vote on his own dismissal.

upvoted 0 times

...

Breana

2 months ago

Hang on, this guy Z is an executive director for life? That's wild! I wonder if he's got some dirt on the other shareholders or something. Option D is probably the way to go, though.

upvoted 0 times

Justine

19 days ago

Definitely, it's all about transparency and accountability in a company. Z should have a voice in what happens to him as a director.

upvoted 0 times

...

Shayne

1 months ago

I agree, option D seems fair. It's important for shareholders to have a say in decisions like that.

upvoted 0 times

...

Lashaun

1 months ago

Yeah, it's pretty crazy that Z is an executive director for life. I think option D makes sense, he should be able to vote on his own dismissal.

upvoted 0 times

...

Geoffrey

2 months ago

I'm not too sure about this one. As an executive director, Z is an employee, so option B might be correct and he could have some employment protection rights.

upvoted 0 times

Keva

2 months ago

C) Z may sue the company for breach of contract in respect of the provision in the articles of association as they form a contract between the members and the company.

upvoted 0 times

...

Johnathon

2 months ago

A) Despite the provision in the articles Z can be dismissed at any time by an ordinary resolution.

upvoted 0 times

...

Option C seems like the most logical choice. The articles of association are a contract between the company and its members, so Z should be able to sue for breach of contract if they try to dismiss him.

upvoted 0 times

...

Sommer

2 months ago

But doesn't the provision in the articles of association create a contract between the members and the company?

upvoted 0 times

...

Ryan

3 months ago

I disagree, I believe the correct answer is D.

upvoted 0 times

...

Sommer

3 months ago

I think the correct answer is C.

upvoted 0 times

...

CIMA Exam CIMAPRA17-BA4-1 Topic 11 Question 60 Discussion

Contribute your Thoughts:

Chandra

Cecilia

Paola

Annice

Zona

Breana

Justine

Shayne

Lashaun

Geoffrey

Keva

Johnathon

Kimi

Sommer

Ryan

Sommer