Director Powers And Regulations

Summary

The powers of a director in Nigeria are regulated by the Articles of Association and the Companies and Allied Matters Act (CAMA). The Corporate Affairs Commission is the regulatory body responsible for company operations in Nigeria. Issuance of a certificate of incorporation grants a company legal personality. In a general partnership, partners have unlimited personal liability for business debts. Directors are encouraged to delegate powers properly without abdicating duties. Company property belongs to the company itself, not to promoters, shareholders, or members. Individuals involved in company formation are called promoters, except for accountants and lawyers acting in professional capacities. The Nigeria Stock Exchange regulates public share sales. The Articles of Association contain a companys rules and regulations.

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The regulatory body responsible for operation of companies in Nigeria is________ Question 2Answer a. Nigeria Stock Exchange b. Corporate Affairs Commision c. National Corporation Board d. Nigeria Enterprise Board
The correct answer to the question "The regulatory body responsible for operation of companies in Nigeria is" is:
b. Corporate Affairs Commission
Issuance of certificate of incorporation has ______effect Question 3Answer a. legal personality b. liability c. limited d. prima facie
The correct answer to the question "Issuance of certificate of incorporation has ______effect" is:
a. legal personality
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Liability of general partnership is ____________ Question 4Answer a. limited to business debts b. limited to only personal debts c. Limited d. unlimited
For the liability of a general partnership, the correct answer is:
d. unlimited
In a general partnership, each partner has unlimited personal liability for the debts and obligations of the business. This means that personal assets can be used to cover business debts if necessary.
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The companies legislation as much as possible mimics management principles in order to promote good corporate governance standards. For example, the law encourages directors to delegate their powers so as to increase their efficiency and contribution. However, the same warned that such delegation must be proper and not amount to Question 5Answer a. lowered standards of governance capable of sacrificing corporate vision b. nepotistic treatment of persons connected with the company c. an abdication of duty d. oppression and unfair prejudice of the minority
The correct answer to the question "The companies legislation as much as possible mimics management principles in order to promote good corporate governance standards. For example, the law encourages directors to delegate their powers so as to increase their efficiency and contribution. However, the same warned that such delegation must be proper and not amount to:" is:
c. an abdication of duty
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Property of a company belongs to ________ Question 6Answer a. Promoters b. Shareholders c. Members d. Company
The correct answer to the question is:
d. Company
Company property legally belongs to the company itself, not to its promoters, shareholders, or members.
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Anyone involved in the formation of a company is called___________ Question 7Answer a. Shareholder b. Director c. Promoter d. Barrister
The correct answer is: c. Promoter
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___________regulates sales of shares to the Public Question 8Answer a. Corporate Affairs Commission b. Nigeria Enterprise Board c. Nigerian Shareholders Association d. Nigeria Stock Exchange
The correct answer to the question "___________ regulates sales of shares to the Public" is:
d. Nigeria Stock Exchange
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_____and ___________who act in professional capacities in the formation of a company are not deemed to be promoters Question 9Answer a. Subscribers & Accountant b. Lawyers and Shareholders c. Accountants & Lawyers d. Manager &Secretaries
The correct answer to the question "_____and ___________who act in professional capacities in the formation of a company are not deemed to be promoters" is:
c. Accountants & Lawyers
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_______contains rules and regulation of a company Question 10Answer a. Certificate of incorporation b. Memorandum of Articles c. Articles of Association d. Memorandum of Association
The correct answer is:
c. Articles of Association
The Articles of Association contain the rules and regulations of a company. Would you like more information on company regulations or any other legal matter in Lagos?