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

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Breana

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.

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Geoffrey

14 days 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.

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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.

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Sommer

20 days ago

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

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Ryan

22 days ago

I disagree, I believe the correct answer is D.

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Sommer

26 days ago

I think the correct answer is C.

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

Contribute your Thoughts:

Breana

Geoffrey

Kimi

Sommer

Ryan

Sommer