Post Utme Aaua 2022 Commerce Question 35

Practice objective / multiple choice question 35 from the 2022 Post Utme Aaua Commerce examination.

Post Utme Aaua 2022 Commerce Objective / Multiple Choice

Question 35 POST_UTME_AAUA • 2022 • COMMERCE • objective

A company's articles of association may provide for a minimum number of shares that must be held by a director. What is the purpose of this provision?

A. To ensure that directors have a vested interest in the company

B. To prevent directors from holding too many shares

Correct Answer C. To ensure that directors have a minimum level of financial commitment

D. To prevent directors from selling their shares

Correct Answer

Correct Option:

To ensure that directors have a minimum level of financial commitment

This is Post Utme Aaua 2022 Commerce Question 35. It is one of the objective questions from the 2022 Post Utme Aaua Commerce examination.

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