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Charles is one of the three directors of Cee Ltd.

Charles is one of the three directors of Cee Ltd. The company has recently agreed to purchase Charles' house at its market value of £250,000. Which of the following is correct?

A.

The purchase is unlawful as a company cannot contract with one of its own directors.

B.

Charles need not formally disclose his interest as he is in a minority on the board.

C.

The purchase must be approved by the shareholders passing an ordinary resolution.

D.

Charles is not entitled to vote as a shareholder to approve the purchase.

CIMA BA4 Summary

  • Vendor: CIMA
  • Product: BA4
  • Update on: Jan 31, 2026
  • Questions: 661
Price: $52.5  $149.99
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