Which two of the following duties are owed by company directors?

1.   ?    Duty of reasonable care and skill
2.   ?    Duty to avoid a conflict of interest
3.   ?    Duty to consider the interests of creditors
4.   ?    Duty to consider employees’ interests ahead of shareholders’ interests

To whom are directors’ duties owed?

1.   ?    The company
2.   ?    Employees
3.   ?    Shareholders
4.   ?    Creditors

Which of the following is not example of a director having an undisclosed interest in a contract to which the company the director serves is a party?

1.   ?    Receipt of a commission
2.   ?    Acting for the other party
3.   ?    The director is the other party
4.   ?    Negotiating the contract

In Ball v Eden Project 2002, the court held that a director was entitled to register the ‘Eden Project’ name as his own as he was a co-founder of the company and he was owed compensation by the company?

1.   ?    True
2.   ?    False

Which of the following is not a type of relief from liability for a breach of duty by a director?

1.   ?    Ratification by the general meeting
2.   ?    Disclosure under the articles of association
3.   ?    Order of the court under s 727 CA 1985
4.   ?    Disqualification order under CDDA 1986

In Cook v Deeks (1916), the court held that:

1.   ?    The directors’ breach of duty could be ratified by the company in general meeting
2.   ?    Ratification of the director’s breach of duty was incapable of being ratified
3.   ?    The directors had acted in good faith in the interests of the company
4.   ?    The directors had failed to disclose their secret profit

In Regal Hastings v Gulliver (1942), the House of Lords held that the directors could have protected themselves for breach of duty had they:

1.   ?    Obtained ratification of their actions from the general meeting
2.   ?    Disclosed their actions to an independent board of directors
3.   ?    Obtained permission of the court
4.   ?    Notified the registrar of companies

Which of the following two statements is true?

1.   ?    Directors, generally, are not allowed to compete with the companies they serve
2.   ?    Directors, generally, are not prohibited from competing with the companies they serve

Which of the following is a type of conduct for which a third party can be held liable for participating in a director’s breach of duty?

1.   ?    ‘Knowing all’
2.   ?    ‘Knowing assistance’
3.   ?    ‘Knowing participation’
4.   ?    ‘Knowing trust’

Which provision of the Companies Act 1985 prevents a director from being able to rely on a disclaimer exempting the director from liability for breach of duty?

1.   ?    S 727 CA 1985
2.   ?    S 320 CA 1985
3.   ?    S 310 CA 1985
4.   ?    S 309 CA 1985