Legum | Quiz on Introduction to Directors of Companies in Ghana

Quiz on Introduction to Directors of Companies in Ghana

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

True

False

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

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 is not duly appointed a director of a company.

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.

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 be called and recognized as a director of the company

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 have all the customary powers of a director

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

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

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.

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

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

Cannot bind the company to transactions.

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

Are considered types of directors.

Do not have the same powers as duly appointed directors.

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

Persons who have the highest authority in a company.

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

Persons are exercise control over a company.

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

7. 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.

8. 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

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

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

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

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

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

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

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

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

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

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

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

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

False

True

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