A Company May Be Exempted from the Requirements of S

question 42

Multiple Choice

A company may be exempted from the requirements of s 296 of The Corporations Act if:

• A) It is a small proprietary company within the definition of the Act.
• B) A special meeting of 75 per cent of the shareholders convened under s 293 agrees to the preparation of financial reports that do not comply with those accounting standards.
• C) The report is prepared in response to a shareholder direction under s 293 and the direction specifies that the report does not have to comply with those accounting standards.
• D) It is a small proprietary company within the definition of the Act and the report is prepared in response to a shareholder direction under s 293 and the direction specifies that the report does not have to comply with those accounting standards.
• E) None of the given answers.

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Definitions:

Fraudulently Induces

To cause someone to act or make a decision based on deception, often leading to legal harm or damage.

Note

In financial contexts, a note is a legal document representing a loan or a promise to pay a specific sum of money at a future date.

Sells

Involves transferring ownership of a good or service to a buyer for a price.

HDC Status

An abbreviation for Holder in Due Course Status, it refers to a legal shield that provides protection for the possessor of a negotiable instrument from certain defenses if the instrument was acquired in good faith.