question about f4 — OpenTuition Forums

Ssamir11y ago

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 directors The 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.

MikeLittleTutor11y ago#1

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

Ssamir11y ago#2

@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.

MikeLittleTutor11y ago#3

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!

Ssamir11y ago#4

@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.

MikeLittleTutor11y ago#5

That's a great score - well done! Onwards and upwards!

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