Post Utme Uniport 2024 Commerce Question 12

Practice objective / multiple choice question 12 from the 2024 Post Utme Uniport Commerce examination.

Post Utme Uniport 2024 Commerce Objective / Multiple Choice
Question 12 POST_UTME_UNIPORT • 2024 • COMMERCE • objective

A company's articles of association specify that the board of directors has the authority to issue new shares. However, the company's memorandum of association prohibits the issuance of new shares without the approval of the shareholders. What is the legal effect of this conflict?

Answer Options

A. The articles of association take precedence over the memorandum of association.
Correct Answer B. The memorandum of association takes precedence over the articles of association.
C. The conflict is resolved by the court's interpretation of the company's constitution.
D. The conflict is resolved by the shareholders' approval.
Correct Answer
B
Correct Option:
The memorandum of association takes precedence over the articles of association.

About This Question

This is Post Utme Uniport 2024 Commerce Question 12. It is one of the objective questions from the 2024 Post Utme Uniport Commerce examination.

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