Read the sentences, then identify which part of the sentence contains an error. TA S6 TA S11

Upon incorporation, the company is a separate legal personality which allows it to enter into contracts and hold the property in its own name.

Upon incorporation
the company is a separate legal personality
which allows it to enter into contracts and hold the property in its own name.
(1 p.)



The directors must act in best interests of the company and exercise their powers for a proper purpose at all times.

The directors must act
in best interests of the company
and exercise their powers for a proper purpose at all times.
(1 p.)



Before commencing business, a private company must file an Articles of Association with the registrar of companies.

Before commencing business
a private company must file
an Articles of Association with the registrar of companies.
(1 p.)



The share capital of a company refers to the monies raised by issue of shares to its shareholders.

The share capital of a company refers to
the monies raised by issue of shares
to its shareholders.
(1 p.)



A director who are in breach of their fiduciary duties may be required to account for any profit made.

A director who are
in breach of their fiduciary duties
may be required to account for any profit made.
(1 p.)



The memorandum of association sets up the persons who agree to form the company and become its initial members.

The memorandum of association sets up
the persons who agree to form the company
and become its initial members.
(1 p.)



Any alteration to the Articles of Association must be approved by a special resolution passed by the shareholders on a general meeting in accordance with the applicable provisions of company law.

Any alteration to the Articles of Association must be approved
by a special resolution passed by the shareholders
on a general meeting in accordance with the applicable provisions of company law.
(1 p.)



The board resolved to allot new shares, but failed to comply to the statutory pre-emption rights of existing shareholders.

The board resolved to allot new shares,
but failed to comply to the
statutory pre-emption rights of existing shareholders.
(1 p.)



A company may be struck off the register if it has ceased trading and does not carry out business activities.

A company may be struck off the register
if it has ceased trading and
does not carry out business activities.
(1 p.)



If a director acts outside the scope of his authority, the company may refuse to ratify such an acts.

If a director acts outside the scope of his authority
the company may refuse to ratify
such an acts.
(1 p.)