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Company Act Compliance Quiz

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Questions and Answers

What type of company is considered a small company according to S. 394(3) CAMA?

A company with at least one government shareholder
A public company with a turnover of less than 120 Million
A company whose directors hold less than 51% of its equity share capital (correct)
A private company with a net asset value of more than 60 Million

According to S. 381(5b) CAMA, when is a body corporate deemed to be a wholly owned subsidiary of another?

When it has at least one foreign government as a shareholder
When it has no member except the other company and the other company's wholly owned subsidiaries are its or their nominees (correct)
When it has multiple members from different companies
When it is a public company

What defines a holding company's relationship with another company?

The other company is a public company while the holding company is private
The other company is the holding company's subsidiary (correct)
Both are public companies
Both companies have different objectives

What is a consortium of companies according to the text provided?

A group of companies and individuals working together for a common objective (C) Signup and view all the answers

Under what condition can a company be classified as a wholly owned subsidiary?

When it has no member except the other company and that other's wholly owned subsidiaries are its or their nominees (B) Signup and view all the answers

How is a group of companies defined in the text provided?

A collection of parent and subsidiary corporations that function as a single economic entity through a common source of control (B) Signup and view all the answers

Under what circumstances can a company's name be cancelled by the Corporate Affairs Commission?

If the name was erroneously registered (D) Signup and view all the answers

What happens when the Corporate Affairs Commission refuses to register a company's name?

The company can give notice to CAC requiring it to apply to the Federal High Court for directions (A) Signup and view all the answers

What is a consequence of a company's incorporation under S. 41 CAMA?

The company becomes a juristic entity that can sue and be sued in its corporate name (A) Signup and view all the answers

What is a duty of a solicitor in the incorporation of a company?

To take full instructions and seek clarity (A) Signup and view all the answers

What happens to a company's properties upon incorporation?

The properties are retained by the company in its corporate name (A) Signup and view all the answers

What is a consequence of a company's incorporation under S. 42 CAMA?

The company becomes a distinct and separate entity from its members (D) Signup and view all the answers

What is one of the prohibited names according to CAMA?

A name identical with an existing registered company or organization (C) Signup and view all the answers

What is the purpose of reserving a name?

To prevent someone else from registering the same name (A) Signup and view all the answers

What is a requirement for incorporating a company?

The company must provide particulars of its first directors (A) Signup and view all the answers

What is one of the circumstances where a prohibited name can be registered?

If the commission is satisfied that the name is not misleading (C) Signup and view all the answers

What is a restrictive name?

A name that is likely to mislead the public (A) Signup and view all the answers

What is one of the particulars required for incorporating a company?

The proposed location of the company (D) Signup and view all the answers

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