Company Law

CLAW3501

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THE COUNCIL OF COMMUNITY COLLEGES OF JAMAICA

FINAL ASSESSMENT

SEMESTER II – 2021 MAY

PROGRAMME: BUSINESS ADMINISTRATION

COURSE NAME: COMPANY LAW

CODE : CLAW3501

YEAR GROUP: THREE

DATE ADMINISTERED: FRIDAY, 2021 MAY 7

DURATION: 24 HOURS

This Assessment Paper has 3 pages

INSTRUCTIONS:

1. ANSWER ALL QUESTION IN SECTION A

2. THERE ARE THREE (3) QUESTIONS IN SECTION B. ANSWER ALL

QUESTIONS IN THIS SECTION

3. GIVE CREDIT TO ANY SOURCE USED TO COMPLETE THIS ASSESSMENT.

THE APA REFERENCING FORMAT MUST BE USED.

4. TURNITIN REPORT MUST BE SUBMITTED WITH THIS ASSIGNMENT

5. SUBMIT THE SIGNED CCCJ ASSIGNMENT COVERSHEET WITH YOUR

ASSIGNMENT

NOTE: YOUR ASSIGNMENT WILL NOT BE ACCEPTED IF 3. AND 4. ABOVE ARE

NOT SUBMITTED

YOUR COMPLETED WORK MUST BE SUBMITTED WITHIN THE SPECIFIED

DURATION OUTLINED ABOVE TO PREVENT PENALTIES

CLAW3501

21/05 The Council of Community Colleges of Jamaica Page 2

SECTION A

Instruction: Complete ALL questions from this section.

CASE STUDY

DB & G Traders limited, once a successful drug distributing Company, has not been doing so

well in recent times. Its profits have been declining and the directors have attributed the decline

to fierce in the market. The shareholders of the company are aging and have an appetite for doing

what it would take to compete in the market and keep the Company in existence. Liquidation

seems to be imminent as they do not believe that the company is a viable option.

Advise the members on how they can dissolve the company.

(Total 20 marks)

END OF SECTION A

CLAW3501

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SECTION B

Instruction: Complete ALL questions from this section.

Question 1

A. Discuss the effects that a formal partnership agreement is likely to have on an existing informal general partnership. (12 marks)

B. Discuss FOUR (4) main differences between a Partnership and a Private Limited Company. (8 marks)

(Total 20 marks)

Question 2

A. Compare each of the following terms:

i. Equity and Debt financing (4 marks) ii. Fixed and Floating charges (4 marks) iii. Shares and Debentures (4 marks) iv. Secured and Unsecured creditor (4 marks)

B. Briefly explain how minority shareholders are protected. (4 marks)

(Total 20 marks)

Question 3

A. Discuss TWO (2) roles of a company’s auditor, and how does the law establishes and regulates the relationship. (10 marks)

B. Explain the term ‘insider trading’. (2 marks)

C. State TWO (2) defences to insider trading. (8 marks)

(Total 20 marks)

END OF ASSESSMENT