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Sample ICSAN Corporate Law Practice Questions

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1Under Section 18(2) of the Nigerian Companies and Allied Matters Act (CAMA) 2020, what is the minimum number of persons required to form a private company?

A.One person

B.Two persons

C.Seven persons

D.Fifty persons

Explanation: Section 18(2) of CAMA 2020 introduced a major reform by allowing a single individual to form a private company. This departs from the previous CAMA 1990 requirement which mandated at least two persons for all company types.

2What is the minimum issued share capital required for a private company under Section 27(2)(a) of CAMA 2020?

A.N10,000

B.N100,000

C.N500,000

D.N2,000,000

Explanation: Under Section 27(2)(a) of CAMA 2020, a private company must be registered with a minimum issued share capital of N100,000. This replaced the old concept of 'authorized share capital' and increased the statutory minimum value from N10,000.

3What is the minimum issued share capital required for a public company under Section 27(2)(b) of CAMA 2020?

A.N500,000

B.N1,000,000

C.N2,000,000

D.N10,000,000

Explanation: Section 27(2)(b) of CAMA 2020 prescribes that the minimum issued share capital of a public company shall not be less than N2,000,000, replacing the older CAMA 1990 requirement of N500,000 authorized share capital.

4Which body corporate is established under Section 1 of CAMA 2020 with the mandate to administer the Act and manage the registration of companies in Nigeria?

A.Securities and Exchange Commission (SEC)

B.Corporate Affairs Commission (CAC)

C.Corporate Governance Council (CGC)

D.Ministry of Industry, Trade and Investment

Explanation: The Corporate Affairs Commission (CAC) is established under Section 1 of CAMA 2020 as the sole regulatory body responsible for the regulation, supervision, registration, and administration of companies, business names, and incorporated trustees in Nigeria.

5Under CAMA 2020, which type of company is defined as one that does not limit the liability of its members upon winding up?

A.Company limited by shares

B.Company limited by guarantee

C.Unlimited company

D.Proprietary company

Explanation: Section 21(1)(c) of CAMA 2020 defines an unlimited company as a company not having any limit on the liability of its members. The members are fully liable to contribute to the assets of the company in the event of winding up.

6Under Section 394(3) of CAMA 2020, what is the maximum annual turnover threshold for a company to qualify as a 'small company'?

A.Not more than N20 million

B.Not more than N50 million

C.Not more than N120 million

D.Not more than N200 million

Explanation: Section 394(3)(b) of CAMA 2020 defines a small company as one whose turnover for the year is not more than N120 million (or such amount as may be fixed by the Commission). This was increased from N2 million in previous regulations to reflect modern economic realities.

7Under Section 394(3)(c) of CAMA 2020, what is the maximum net assets value threshold for a company to be classified as a 'small company'?

A.Not more than N10 million

B.Not more than N30 million

C.Not more than N60 million

D.Not more than N100 million

Explanation: Section 394(3)(c) of CAMA 2020 specifies that a small company must have a net assets value of not more than N60 million (or such amount as may be fixed by the Commission).

8Which of the following statements is true regarding the appointment of a Company Secretary for a private company under CAMA 2020?

A.Every company, including small companies, must appoint a Company Secretary.

B.The appointment of a Company Secretary is optional for all private companies.

C.The appointment of a Company Secretary is optional only for a small company.

D.A Company Secretary is only required for public companies.

Explanation: Section 330(1) of CAMA 2020 makes the appointment of a Company Secretary optional for a small company, while remaining mandatory for all other private and public companies. This is part of the ease of doing business reforms.

9Which of the following companies is exempt from the statutory requirement to hold an Annual General Meeting (AGM) under Section 237(1) of CAMA 2020?

A.Every private company

B.A small company or a single-shareholder private company

C.A company limited by guarantee

D.Only public companies are exempt

Explanation: Section 237(1) of CAMA 2020 exempts a small company or a single-shareholder private company from the requirement of holding an Annual General Meeting (AGM). This is a significant reduction in administrative burden.

10Under Section 22(3) of CAMA 2020, what is the maximum number of members a private company can have, excluding current or former employees of the company?

A.20 members

B.50 members

C.100 members

D.Unlimited

Explanation: Section 22(3) of CAMA 2020 states that the number of members of a private company shall not exceed 50. In joint holdings of shares, they are treated as a single member, and employees/former employees who became members while employed are excluded from this count.

About the ICSAN Corporate Law Exam

This practice exam covers Nigerian company law (CAMA 2020), company incorporation, promoters, shares, capital structures, directors' duties, and corporate insolvency.

Exam sponsor: Institute of Chartered Secretaries and Administrators of Nigeria. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

100 multiple-choice questions

Time Limit

3 hours

Passing Score

50%

Exam / Certification Fees

Free

Exam sponsor website

Reported exam pass rate: ~75%. estimated pass rate This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Official ICSAN Website

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

20%

Nigerian Company Law (CAMA 2020)

Statutory requirements, CAC oversight, and the companies register.

20%

Incorporation & Promoters

Corporate formation procedures, promoters' liabilities, and pre-incorporation contracts.

20%

Shares & Capital Structure

Share classes, share capital changes, debentures, and company charges.

20%

Directors' Duties & Appointment

Fiduciary duties, conflicts of interest, qualifications, and removal of directors.

20%

Corporate Insolvency & Winding-Up

Receivership, liquidation methods, and creditor priority schemes.

Preparing for the ICSAN Corporate Law Exam

What You Need to Know

Passing score: 50%
Assessment: 100 multiple-choice questions
Time limit: 3 hours
Exam / certification fees: Free Official sources

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Frequently Asked Questions

What is the format of the ICSAN Corporate Law exam?

The exam consists of 100 multiple-choice questions covering all five content domains.

What is the passing score for the ICSAN Corporate Law exam?

Candidates must score at least 50% to pass the exam.

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