Paper F4 (ZWE) Corporate and Business Law (Zimbabwe) Specimen questions applicable from December Fundamentals Level Skills Module
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1 Fundamentals Level Skills Module orporate and usiness Law (Zimbabwe) Specimen questions applicable from December 2014 Time allowed: 2 hours This is not a full specimen paper, it is a selection of specimen questions to give an indication of the style of the This paper is divided into two sections: questions. It includes five multiple choice questions and one Section multi task LL 45 question. questions are compulsory and MUST be attempted The Section full exam LL will FIVE consist questions of are the compulsory following: and MUST be Section attempted 45 multiple choice questions 25 for 2 marks each, and 20 for 1 mark each Do NOT open this paper until instructed by the supervisor. Section Five 6 mark questions ll You questions must NOT write are compulsory. in your answer booklet until instructed by the supervisor. To This see question an example paper must of the not full be removed specimen from exam, the examination please refer hall. to the F4 (GLO) Specimen Paper. Paper F4 (ZWE) The ssociation of hartered ertified ccountants
2 Section LL 45 questions are compulsory and MUST be attempted Note: Only five specimen questions provided. For full specimen exam, see F4 (GLO) Specimen paper Please use the space provided on the inside cover of the andidate nswer ooklet to indicate your chosen answer to each multiple-choice question. 1 What is the name of the system of law applicable in Zimbabwe? Sharia law English law Roman Dutch law (1 mark) 2 What is the purpose for an award of damages for breach of contract? D To put the injured party in the position they would have occupied had the contract been performed To put the injured party in the position they would have occupied had the contract not been breached To compensate the injured party for sentimental loss and injured feelings To mitigate the loss to the injured party as a result of the breach 3 Joyce works in a restaurant and her contract of employment explicitly states that she is employed as a till-operator. When the employer tells her that she has to wash the dishes, Joyce immediately resigns. Which of the following may this be considered an example of? D Retrenchment Summary dismissal onstructive dismissal Unfair dismissal 4 Which TWO of the following statements relating to partnerships are correct? (1) They must be registered at the company registry (2) They are limited to a maximum of 20 members (3) They must have a minimum of two members (4) They enjoy limited liability (1) and (4) (2) and (3) (2) and (4) D (3) and (4) 2
3 5 Which of the following may the share premium account be used for? D rights issue of shares bonus issue of shares dividend Directors remuneration 3 [P.T.O.
4 Section LL FIVE questions are compulsory and MUST be attempted Note: Only one specimen question provided. For full specimen exam, see F4 (GLO) Specimen paper. Please write your answers to all parts of these questions on the lined pages within the andidate nswer ooklet. 1 Greenfields Ltd is an agro-based public limited liability company which was incorporated on 1 February The company has seven directors one of whom, Mhosva, was declared insolvent in He is yet to be rehabilitated. The company wishes to pass a special resolution of members to change the name of the company and its articles. The company secretary, Vasco, ordinarily lives in neighbouring South frica. Required: (a) Describe when the company must have the statutory meeting and the first annual general meeting. (b) Explain the legal anomalies relating to Mhosva and Vasco s position in the company. (c) Describe the length of notice required, and how many of the company s members present and voting in person or by proxy are needed to pass the special resolution. (6 marks) 4
5 nswers
6 Fundamentals Level Skills Module, Paper F4 (ZWE) orporate and usiness Law (Zimbabwe) Specimen nswers Section Section 1 (a) The statutory meeting must have been held within three months of 1 February 2013 (i.e. 30 pril 2013) and as for the annual general meeting, s.125(2) ompanies ct, hapter 24:03 reads as follows: nnual general meeting of a company shall be held (a) in the case of the first such meeting, within a period of 18 months after the date of the incorporation of the company concerned. (b) (c) Since Mhosva is an unrehabilitated insolvent, he is disqualified from being appointed a director of a company (s.173 1(c)). s for the company secretary, Vasco, s.169(2) ompanies ct, hapter 24:03 reads as follows: Every company shall have at least one secretary ordinarily resident in Zimbabwe. Therefore both Mhosva and Vasco are in violation of the law. 21 days notice is required and 75% of the company s members must be present and voting in person or by proxy to pass the special resolution (s.133 ompanies ct, hapter 24:03). 7
7 Fundamentals Level Skills Module, Paper F4 (ZWE) orporate and usiness Law (Zimbabwe) Specimen Marking Scheme Section 1 5 One or two marks per question Section 1 (a) 2 marks ccurate answer. 1 mark n average answer. (b) 2 marks ccurate answer. 1 mark n average answer. (c) 2 marks n accurate answer. 1 mark n average answer. 9
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