Legum | Quiz on Introduction to Directors of Companies in Ghana

Quiz on Introduction to Directors of Companies in Ghana

1. Which of the following cases established that a company is liable for the acts of a de facto director?

H.L. Bolton (Engineering) Co., Ltd. v. T.J. Graham & Sons Ltd. [1957] 1 QB

Commodore v. Fruit Supply (Ghana) Ltd. [1977] 1 GLR 241

Kwapong v. Ghana Cocoa Marketing Board (consolidated) [1985-86] 1 GLR 7

Re Hydrodan (Corby) Ltd. [1994] 2 BCLC 180

2. Which of the following is not a reason why directors are the most important organ of a company?

The acts of directors are the acts of the company.

Directors (as a collective) manage the business of a company.

Directors, and the role they perform, are central to the definition of corporate governance.

In corporate practice, most companies maintain the default powers given to directors under Act 992.

3. Under which of the of the following conditions will a person be considered a director (properly so called) under Act 992?

The person must have all the customary powers of a director

The person must have the duties and liabilities imposed by directors under Act 992.

The person must be appointed as a director and the purpose for which they are appointed is to direct and administer the business of the company.

The person must be called and recognized as a director of the company

4. A shadow director and a de factor are ‘directors’ without appointment.

True

False

5. The case of Kwapong v. Ghana Cocoa Marketing Board (consolidated) [1985-86] 1 GLR 7 established the following principles except:

The board of directors may be called by whatever name, yet still be considered the board of directors.

The board of directors could properly execute the powers of a body corporate.

The board of directors are an independent body and not subject to the direct control of members of the company.

6. Which case likened a company to a human body, and held directors to be the mind or will of companies?

H.L. Bolton (Engineering) Co., Ltd. v. T.J. Graham & Sons Ltd. [1957] 1 QB

Freeman and Lockyer v. Buckhurst Park Pty [1964] 2 QB 480

Aberdeen Railway Company v. Blaikie Brothers [1985-86] 1 GLC 74

Re Hydrodan (Corby) Ltd. [1994] 2 BCLC 180

7. Which of the following definitions fit the definition of a director under the Companies Act, 2019 (Act 992)?

Persons who hold themselves out or are held out by the company as a director.

Persons who have the highest authority in a company.

Persons are exercise control over a company.

Persons, by whatever name called, who are appointed to direct and administer the business of the company.

8. One distinguishing feature between a shadow director and a de facto director is that:

The shadow director lurks in the shadows and only comes out when the substantive director is absent.

The shadow director is held out as being a director, while the de facto director is not held out as such.

The shadow director has more power than the de facto director.

The shadow director is not held out as being a director, while the de facto director is held out as such.

9. A shadow director needs to satisfy all the following conditions except:

He is not duly appointed a director of a company.

He must be interested in how the company is directed and controlled by the directors.

He directs the directors of the company, whether de facto or de jure, to act in relation to the company, and those directors are accustomed so to act.

He does not hold himself out as a director, is not held out as a director, and does not purport to act as a director.

10. Under Act 992, a shadow director and a de facto director…

Are considered types of directors.

Cannot bind the company to transactions.

Have the liabilities and duties of directors imposed on them as if they were duly appointed directors.

Do not have the same powers as duly appointed directors.

11. A shadow director is in no way similar to a de factor director

False

True

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