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CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 179 Topic 18 Discussion

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CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 179 Topic 18 Discussion

BA4 Exam Topic 18 Question 179 Discussion:
Question #: 179
Topic #: 18

R and P are the only shareholders in RP Ltd, each holding 100 ordinary £1 shares. They have both paid half the nominal value of the shares. The company has been placed in creditors' voluntary liquidation on the ground that it is unable to pay its debts.

 

Which of the following is correct?
A.

As it is a limited company, RP Ltd is not obliged to pay its debts.

B.

As the liability of R and P is limited they are not obliged to pay anything towards the company's debts.

C.

Rebecca and Paul must each pay 50% of the company's debts.

D.

Rebecca and Paul are each obliged to pay the other half of the nominal value of their shares, and no more.

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Actual exam question for CIMA BA4 exam by Solis62292 at Aug 3, 2025, 12:00:00 AM

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