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Sample ICSAN Admin Risk Practice Questions

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1Under Section 332 of the Companies and Allied Matters Act (CAMA) 2020, which of the following is NOT automatically qualified to be appointed as a Company Secretary of a public company in Nigeria?

A.A member of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN)

B.A legal practitioner enrolled to practice in Nigeria

C.A graduate of business administration with three years of corporate experience

D.A member of the Institute of Chartered Accountants of Nigeria (ICAN)

Explanation: According to Section 332 of CAMA 2020, a company secretary of a public company must be a member of ICSAN, a legal practitioner in Nigeria, a member of a recognized professional accountancy body (like ICAN or ANAN), or a firm of such professionals. A business administration degree with corporate experience does not automatically satisfy the statutory qualifications for a public company secretary.

2What is the minimum issued share capital required for a private company limited by shares under CAMA 2020?

A.N10,000

B.N100,000

C.N500,000

D.N2,000,000

Explanation: CAMA 2020 increased the minimum issued share capital for private companies from N10,000 (authorized share capital under CAMA 1990) to N100,000 issued share capital (Section 27(2)(a)). Authorized share capital has also been replaced by the concept of issued share capital.

3Under CAMA 2020, how is a company limited by guarantee incorporated, and what is its primary restriction regarding profit?

A.It is incorporated with the authority of the Attorney-General of the Federation, and its profits must not be distributed to members.

B.It is incorporated like any private company, and profits can only be distributed with the consent of the Corporate Affairs Commission.

C.It is incorporated with the authority of the Minister of Industry, Trade and Investment, and profits must be reinvested or paid out to members after 5 years.

D.It is incorporated with the consent of the Central Bank of Nigeria, and its profits are strictly tax-exempt.

Explanation: Section 26 of CAMA 2020 mandates that a company limited by guarantee must obtain the authority of the Attorney-General of the Federation for its registration. It is formed for promoting commerce, art, science, religion, charity, etc., and its income and property must be applied solely to the promotion of its objects; no portion can be paid or transferred directly or indirectly as dividend or profit to its members.

4Within what period must a company deliver a return of allotment of shares to the Corporate Affairs Commission (CAC) after making any allotment?

A.14 days

B.30 days

C.60 days

D.90 days

Explanation: Section 154(1) of CAMA 2020 states that whenever a company limited by shares makes any allotment of its shares, it must, within one month (interpreted as 30 days for filings), deliver to the CAC for registration a return of the allotments.

5Which of the following is true regarding the use of a common seal by a company under CAMA 2020?

A.A company must have a common seal, and all contracts must be sealed to be valid.

B.A company is no longer required to have a common seal; its use is now optional.

C.Only public companies are required to have a common seal.

D.A company's common seal must be registered with the Corporate Affairs Commission to be legally binding.

Explanation: Section 98 of CAMA 2020 provides that a company may have a common seal, but it is not mandatory. A company can execute documents by having them signed by a director and the secretary, or by two directors, or by a director in the presence of a witness.

6Under CAMA 2020, what is the default legal status of a sole member in a private company?

A.Single-member private companies are now permitted under CAMA 2020.

B.A private company must have at least two members; a single-member entity is automatically dissolved after 6 months.

C.A single-member private company is permitted, but the member must be a corporate body.

D.Single-member companies are only allowed for public companies or government parastatals.

Explanation: Section 18(2) of CAMA 2020 permits a single person to form and register a private company. This is a significant departure from the previous CAMA 1990 which required a minimum of two members for all companies.

7Under Section 273 of CAMA 2020, what is the minimum number of directors required for any company in Nigeria?

A.One director

B.Two directors

C.Three directors

D.Five directors

Explanation: Section 273(1) of CAMA 2020 states that every company (except a small company, which can have one director under specific provisions, but generally for standard corporate entities the minimum baseline is two) must have at least two directors. If the number falls below two, the company must appoint a new director within one month.

8A person cannot be appointed as a director of a company in Nigeria if they are under what age, unless special circumstances apply?

A.16 years

B.18 years

C.21 years

D.70 years

Explanation: Under Section 281(a) of CAMA 2020, a person under the age of 18 years is disqualified from being appointed as a director of a company in Nigeria.

9Under CAMA 2020, within how many months after the end of its financial year must a company file its annual return with the CAC?

A.Within 14 days after the Annual General Meeting

B.Within 42 days after the Annual General Meeting

C.Within 3 months after the end of the financial year

D.Within 6 months after the end of the financial year

Explanation: Section 421 of CAMA 2020 specifies that the annual return must be completed and filed with the CAC within 42 days after the Annual General Meeting (AGM) for the year, except for small companies which have simplified filing timelines.

10Which of the following describes the statutory duty of care and skill of a director under Section 305 of CAMA 2020?

A.A director owes a duty of care and skill to the company, measured by both an objective standard (reasonable director) and subjective standard (their actual knowledge and experience).

B.A director is only liable if they show gross negligence; ordinary mistakes do not breach the duty of care.

C.A director owes no personal duty of care if they acted on the advice of the company secretary.

D.A director's duty of care is owed strictly to the majority shareholders, not the company itself.

Explanation: Section 305 of CAMA 2020 codifies the duties of directors. A director must act in good faith and in the best interests of the company, exercising the care, skill, and diligence that a reasonably prudent person would exercise in comparable circumstances (objective), as well as utilizing any special knowledge or experience they possess (subjective).

About the ICSAN Admin Risk Exam

This practice exam covers corporate administration, meeting resolutions, minutes preparation, enterprise risk management, risk assessment, and compliance.

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%

Corporate Administration Procedures

Statutory register maintenance, CAC returns filing, and administrative systems operations.

20%

Meetings, Resolutions & Minutes

Board and shareholder meeting notices, quorum rules, proxy management, and minute-writing standards.

20%

Enterprise Risk Management Framework

COSO ERM framework, risk appetite, policy formulation, and risk governance structures.

20%

Risk Identification & Assessment

Qualitative and quantitative risk analysis, risk registers, and business impact analysis.

20%

Internal Control & Compliance

Audit committees oversight, internal control evaluations, and statutory compliance reviews.

Preparing for the ICSAN Admin Risk 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 Admin Risk exam?

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

What is the passing score for the ICSAN Admin Risk exam?

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

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