NATIONAL OPEN UNIVERSITY OF NIGERIA

91 CADASTRAL CLOSE, AIRPORT ROAD, JABI, ABUJA

FACULTY OF LAW

DEPARTMENT OF COMMERCIAL LAW

NOVEMBER 2018 EXAMINATION

COURSE CODE:      MBA804                                                                         CREDIT UNITS:                2

COURSE TITLE:     BUSINESS AND COMPANY LAW

INSTRUCTIONS:    1. Indicate your Matriculation Number clearly

2. Attempt question one (1) and any other three (3) questions – four questions in all
3. Question one (1) is compulsory and carries 25marks, while the other questions carry 15marks each.
4. Present all your points in coherent and orderly Manner

TIME ALLOWED: 2^1/2 HOURS

1. Shade approached a bank for a loan of One Million Naira to set up her clothing company – Unique Company Ltd. The loan was eventually granted to Unique Company Ltd on 2^nd January 2017, payable by December 31^st  The money was disbursed as follows: 31^st march 2017- company registration of N100,000, 16^th April 2017 – acquisition of office space and rent of N500,000,  17^th April 2017 – Raw materials of N300,000, 1^st May 2017 – office renovation of 100,000. As at this morning, she has only been able to repay N500,000.  The bank intends to bring an action for recovery of unpaid loan.  Discuss and advice the parties on their liabilities.                                                                                                                               [Compulsory, 25marks]

2. Aquila intends to register a Limited Liability Company. Advise him on the necessary steps he needs to take in the registrations of his company.                                        [15marks]

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