Skip to content

CSEET · Business Laws and Management · Elements of Company Law

Match the Producer Company requirement in Column I with the document in Column II. Column I: (a) Name ending with "Producer Company Limited"; (b) Qualifications for membership and procedure for transfer of shares; (c) Statement that liability of members is limited; (d) Mutual assistance principle of a single vote per member. Column II: (1) Memorandum only; (2) Articles only. Which is the correct matching?

The correct matching is name and limited liability in the memorandum, and membership qualifications with the single-vote principle in the articles. The memorandum of a Producer Company states the name and limited liability, while the articles carry the mutual assistance principles and membership and transfer provisions.

  1. A(a)-1, (b)-2, (c)-1, (d)-2Correct
  2. B(a)-2, (b)-1, (c)-2, (d)-1
  3. C(a)-1, (b)-1, (c)-2, (d)-2
  4. D(a)-2, (b)-2, (c)-1, (d)-1

Explanation

Section 378F places the name clause and the limited liability statement in the memorandum. Section 378G places the membership qualifications, share transfer procedure and the mutual assistance principles, including a single vote per member, in the articles. So (a)-1, (b)-2, (c)-1, (d)-2.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Company Law shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Company LawFree diagnostic mock

More Elements of Company Law questions