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Companies And Allied Matters Act 1990 Relating To Formation of Companies - SS2 Accounting Past Questions and Answers - page 1

1

What does the Companies and Allied Matters Act 1990 govern?

A

The formation and management of companies in Nigeria

B

The regulation of the stock market

C

The management of government-owned corporations

D

The regulation of the insurance industry

correct option: a
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2

How many people are required to form a company under the act?

A

At least one person

B

At least two people

C

At least three people

D

At least four people

correct option: b
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3

What is the registration process for a company under the act?

A

Submitting a business plan and paying a fee

B

Submitting a memorandum and articles of association and paying a fee

C

Registering with the Nigerian Stock Exchange

D

Applying for a business license

correct option: b
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4

What are some of the rules and regulations that registered companies must follow under the act?

A

Keeping proper books of accounts and filing annual returns

B

Hiring a minimum number of employees

C

Investing in government securities

D

Holding meetings with government officials

correct option: a
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5

What is the Corporate Affairs Commission (CAC)?

A

A government agency responsible for regulating the stock market

B

A professional association for Accountants in Nigeria

C

A government agency responsible for registering and regulating companies

D

A regulatory body for the insurance industry

correct option: c
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6

What are some of the documents required for the registration of a company under the Companies and Allied Matters Act 1990? 

Some of the documents required include a memorandum and articles of association, identification documents of the directors and shareholders, and proof of payment of registration fees.

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7

What are some of the responsibilities of directors and officers of a company under the act?

Some of the responsibilities include managing the affairs of the company, ensuring compliance with the law and regulations, and acting in the best interest of the company and its shareholders.

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