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 Explain the procedure that the members of Glad Ltd must follow in order to amend the company's  articles

Explain whether the other members of Glad Ltd will be successful in their attempt to change the and require Fred to transfer his shares to them

 Are companies permitted to change their names and domiciles? 

A

 A company may change its name but not its domicile 

B

 A company may change its domicile but not its name 

C

 A company may change its name and its domicile 

 Which of the following parties is contractually bound by a company's constitution? 

A

 The company 

B

 Members in a capacity other than as a member 

C

 Company directors 

D

 Third parties with a business relationship with the company 

 A company may have restricted objects and therefore it may not be permitted to enter into certain contracts.  

Which of the following statements describes the position of third parties whose contract with a company is outside the scope of its objects? 

A

 The contract will not be a valid one 

B

 The company is required to ratify the contract for it to be binding on it 

C

 The contract will be binding on the company and the third party 

D

 The contract is voidable at the instance of the company 

Which TWO of the following are included in the content of a company's model articles of association? 

(1) Payment of dividends  

(2) Payment of charitable donations  

(3) Formation of a remuneration committee  

(4) Appointment of directors 

A

 1 and 2 

B

 1 and 4 

C

2 and 3 

D

 2 and 4 

 Which of the following is true regarding the content of model articles of association? 

A

The content of model articles of association is the same for all types of company 

B

 The content of model articles of association includes clauses relating to the remuneration of employees 

C

 The content of model articles of association includes clauses relating to the ethical treatment of suppliers 

D

 The content of model articles of association includes clauses relating to communication with members 

 Which of the following changes to a company's articles of association is valid? 

A

 Compelling a member to subscribe for additional shares 

B

 Permitting the company to perform an illegal act 

C

Reducing the majority needed in a resolution to change the company's name to 25% 

D

 Compelling a member to accept increased liability on the company's shares that they hold 

Which of the following statements regarding members wishing to amend a company's articles of association is correct? 

A

The change must be bona fide for the benefit of the company as a whole 

B

 A minority cannot prevent the majority from unjustly discriminating against them by changing the articles 

C

 The majority may not alter the articles if a minority feels it is prejudicial to their interests 

D

 A majority of members may not force a transfer of shares from the minority to themselveseven if it is in the best interests of the company as a whole 

Which of the following is true regarding the choice of company name? 

A

 No name may be offensive or sensitive as defined by the Secretary of State 

B

 All private companies must end their name with 'Ltd' 

C

 Names that suggest a connection with government are void 

D

 Companies that are registered as Welsh must end their name with '(Cym)'