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


1.  The memorandum of association sets up the persons who agree to form the company and become its initial members in accordance with applicable company law.

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




2.  Any alteration to the Articles of Association must be approved by a special resolution passed by the shareholders on a duly convened general meeting.

Any alteration to the Articles of Association must be approved
by a special resolution passed by the shareholders
on a duly convened general meeting.
(1 p.)




3.  The directors owe fiduciary duties to the company and must act in good faith in the best interests for the company at all times.

The directors owe fiduciary duties to the company
and must act in good faith
in the best interests for the company at all times.
(1 p.)




4.  Upon incorporation, the company acquires a separate legal personality, enabling it to enter into contracts and own property for its own name.

Upon incorporation
the company acquires a separate legal personality,
enabling it to enter into contracts and own property for its own name.
(1 p.)




5.  The share capital of the company consists of the amount raised by the issue of shares to shareholders in accordance to the Articles.

The share capital of the company consists of
the amount raised by the issue of shares
to shareholders in accordance to the Articles.
(1 p.)




6.  A director who breaches his duties may be required to account for any profit made as a result of such an breach.

A director who breaches his duties
may be required to account for any profit made
as a result of such an breach.
(1 p.)




7.  The board of directors is responsible for managing the affairs of the company and exercising its powers in accordance with the Article of Association.

The board of directors is responsible for managing the affairs of the company
and exercising its powers
in accordance with the Article of Association.
(1 p.)




8.  A company may carry on business only after it has been validly incorporated and enter on the register of companies.

A company may carry on business
only after it has been validly incorporated
and enter on the register of companies.
(1 p.)




9.  The allotment of shares must comply with statutory pre-emption rights unless such rights will have been lawfully disapplied by the shareholders.

The allotment of shares must comply with statutory pre-emption rights
unless such rights will have been lawfully disapplied
by the shareholders.
(1 p.)




10.  The Articles of Association regulate the internal management of the company and define the rights and obligation of its members.

The Articles of Association regulate the internal management of the company
and define the rights and obligation
of its members.
(1 p.)