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Hi,
I have a quick question from the kaplan exam kit.The question is:
Q147)
which of the following are NOT bound to one another by the articles of association?
A. Company to third parties
B. Members to the company
C. Company to members
D. Company to directorsThe answer is A but was wondering why D would not apply or is it because directors could also be members so they could be acting in their capacity as members in which case the articles would apply.
Thanks for your help.
That’s a tricky one. I don’t believe that it’s because of the possibility that directors may also be shareholders.
I think the reason is more likely to be because the Articles of a company will spell out the duties and responsibilities of the directors
@mikelittle said:
That’s a tricky one. I don’t believe that it’s because of the possibility that directors may also be shareholders.I think the reason is more likely to be because the Articles of a company will spell out the duties and responsibilities of the directors
Thanks Mike. So do you think it is because the articles set out the duties of the directors and therefore they are bound by them as they have to act within their powers. So is it because directors have to act within the constitution and therefore are to an extent bound by the articles which will set what duties/acts they have.
That’s the way my mind worked, yes.
In addition, of course, option 1 was so the correct one that all others were excluded immediately!
@mikelittle said:
That’s the way my mind worked, yes.In addition, of course, option 1 was so the correct one that all others were excluded immediately!
Thank you for your help Mike got 83% today and I am really happy with that following my 78% in f5.
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