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CENTRAL UNIVERSITY COLLEGE

END-Of-SECOND

SEMESTER EXAMINATION: 2012/2013

DEPARTMENT Of ACCOUNTING
SBAC 204
COMPANY & PARTNERSH]P LAW (3 Credits)
LEVEL 200
Morning, Afternoon & Evening

21/2 Hours

STUDENT II) No

.
INSTRUCTIONS

Answer any four questions in the answer booklet for a total of hundred (I 00) marks. Each
question carries twenty five (25) marks

DO NOT TURN OVER THIS PAGE U TIL YOU HAVE BEEN 'rOLD TO DO SO BY THE
INVIGILATOR

LECTUREl{S

DERICK OHEMENG

!'vlE:\SAH. foERl)I!'~ANn ADADZI &.. tvlICl-IAEL YOUR]

------------------~~---------1.

Companies incorporated
a private company.

under the Companies Code may either be a public company or

State and explain the features

that distinguish

a private company

from a public company. (25 marks)

2.

Rawlings and Mahama

Mahamahas

are partners

in the firm,

Pink Law Associates.

Rawlings and

agreed to invite Kufour to join the firm as a third partner.

An offer was

made to Kufour to join the firm on 14th February, 2013 and the offer was accepted by
th

Kufour on 6

th

March, 2013. On 15 Feburary, 2013, Pink Law Associates entered

Contract with UT Financial Services for a loan of $10,000. The amount

so" February,

into a

was payable on

2013. On the date of payment, Pink Law Firm was able to pay only $4,000

and has since failed to pay the remaining amount.

sue the current

partners,

UT Financial Services has decided to

Rawlings, Mahama and Kufour for the remaining

amount of

$6,000.
Based on the principles

of partnership

law under the Incorporated

Partnership

Act,

1960, (Act 152), advice UT Financial Services on the right person or persons to sue for
the remaining amount. (25 marks)

3.

Rev. Dr. Nana Bawumia is the uncle of Akosua Boateng and Felix Saaka, who are both
students of Central University College. Akosua Boateng and Felix Saaka have decided to
form a partnership.
ABS & Associate,

They registered a firm named ABS & Associate. On the letterhead

the name of Rev. Dr. Nana Bawumia

as a partner

of

of the ABS &

Associate. ABS & Associate advertises to engage a Public Relations Official. Mr. Ahiabor
who is a member of the ICGC intends to apply for the position.

He contacted

Rev. Dr.

Nana Bawumia who stated that he is partner at ABS & Associate and encourage
Ahiabor to apply for the position.

Mr. Ahiabor entered

Associate based on that representation.

into the contract

For 6 months, Mr. Ahiabor's

paid. He has taken legal action against Rev. Dr. Nana Bawumia

Mr.

with ABS &

salary has not been

for the unpaid salary.

Rev. Dr. Nana Bawumia argued that he is not liable since he was never a partner of ABS
& Associate.

Advice Rev. Ahiabor whether or not he can take legal action against Rev. Dr.
Nana Bawumia who was never a registered partner of J\BS & Associate. (25
marks)
4.

The Regulations of MTN Ghana Limited provides that all contract

Company
entered

must be signed by two directors

into a contract

from Tema Roundabout

only one director

of the Company

entered

into by the

to be valid. Fiifi Grant

with MTN Ghana Limited to dig trench for the laying of cables
to Miotso for a fee of GHClO,OOO. The contract

of MTN Ghana Limited. MTN Ghana Ltd has written

was signed by

to Fiif Grant that

the contract fees are too high and that the contract is not binding on the company since
it is Signed by only one directpr.

I.

II

___

~~~~~~~iiii~

Based on decided case, advice Fiifi Grant on whether or not the contract is binding on

." ......

MTN Ghana Limited. (25 marks)

.

5.

Explain the doctrine

of corporate

veil and state 5 instances where the Companies Act,

1963 (Act 179) permits the lifting ofthe

6.

corporate veil. (25 marks)

State and explain four ways by which a person can become a member
limited by shares in Ghana. (25 marks)

of a company