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January 7, 2016

)Triple H, Undertaker Austin and Flair are directors of Mieleka Ltd a company regulated by Table A. Fair is the managing director and undertaker is the chairperson of the company. Sometime ago the directors meeting as a board decided to: i)Lend Triple H Shs.500,000 to purchase a car for his wife Stephane for her personal use;

a)Discuss the rules relating to appointment and vacation of office of directors
(10 marks)

b)Triple H, Undertaker Austin and Flair are directors of Mieleka Ltd a company regulated by Table A. Fair is the managing director and undertaker is the chairperson of the company. Sometime ago the directors meeting as a board decided to:
i)Lend Triple H Shs.500,000 to purchase a car for his wife Stephane for her personal use;

ii)Advance Shs.500,000 to Austin to cover his expenses on a worldwide (promotional tour on behalf of the company). Booker T,the company secretary informs you that Stone Cold a shareholder claims that this transaction should have been approved by the members and that he intends to raise the matter during the next general meeting.
Required
i)Advise Booker T which of the transactions need approval by the members in general meeting (4 marks)

ii)What are the consequences of the necessary approval not being obtained? (6 marks)
(Total: 20 marks)

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