CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 154 Topic 16 Discussion

CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 154 Topic 16 Discussion

BA4 Exam Topic 16 Question 154 Discussion:
Question #: 154
Topic #: 16

Which of the following is incorrect in relation to a reduction of capital by a private company?


A.

The company must pass a special resolution to authorize the reduction of capital.


B.

The reduction may affect the company's creditors.


C.

It is necessary for the company's Articles of Association to authorize a reduction of capital.


D.

The directors must make a solvency statement.


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