- This topic has 1 reply, 2 voices, and was last updated 6 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Question on Articles’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Question on Articles
AOA of ABC ltd provide that all disputes between ABC ltd and its directors must be referred to arbitration. D is a dirctor of ABC ltd and is in dispute with the company about late payment of his director’s fees
Which of the following is correct?
i) D is obliged by AOA to refer the dispute to arbitration whether or not he is a shareholder
ii) D is obliged by AOA to refer the dispute to arbitration only if he is a shareholder
a) i only
b) ii only
c) both i and ii
d) neither i nor ii
Which is the correct answer and please also explain me
I would suggest that the correct answer is d) … because the Articles are binding on the company and the company’s members but only in their capacity as members
Therefore the articles are not binding on members acting in their capacity as directors
OK?