CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 149 Topic 15 Discussion

CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 149 Topic 15 Discussion

BA4 Exam Topic 15 Question 149 Discussion:
Question #: 149
Topic #: 15

X Ltd has entered into a number of contracts with Y Ltd. In which of the following situations could the directors be held personally liable for the debts contracted with Y Ltd?

(i) X Ltd has continued to trade at a time when insolvency appeared inevitable

(ii) X Ltd has become insolvent and is unable to pay its debts to Y Ltd

(iii) X Ltd has contracted for a purpose not specified in its articles of association


A.

(i) only


B.

(i) and (ii) only


C.

(ii) only


D.

(iii) only


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