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NUST BUSINESS SCHOOL (NBS)

SEMESTER FINAL EXAMINATION
COURSE: MGT - 616
SUBJECT: Corporate Law and Governance

Course Faculty: Ummar Ziauddin Max

marks:100
Max time: 03 Hours

INSTRUCTIONS:-
1. Read each question very carefully and make sure that you understand the question.
2. You are allowed to consult faculty to remove any doubt during first 30 minutes of
examination.
3. Do not copy the question and answer all questions in sequence.
4. Rough working can be done in the answer book and cross out rough working before handing
your answer book.
5. Leave your mobile phones outside the examination hall.
6. Cheating in the examination will lead to cancellation of paper and strict disciplinary
action.

Attempt ALL questions.

Part A
(90 minutes)

1. With background both in business and law, a client has approached you, and asked for your
advice. Goodluck to them! Here are few facts your clients have volunteered: They wish to
start a business of utility store with a trading name of UZS and are already in the process of
closing several deals that will allow UZS to sell products of daily use at a discounted rate.
They are also, at present, looking for several locations critical for their sales and are also
designing marketing strategies for their customers. The mission statement of UZS is this:

“UZS works for the welfare of the working classes”

Advice on what form of business will best compliment the operations and business model of
UZS. Discuss three possible options in detail analyzing pros and cons for each business form,
before suggesting the best option available. Don’t ruin their lives! (25 marks) [CLO1,4]

2. A director of a private company limited by shares, a separate legal entity, is arrested for non-
payment of charges for energy supply. Is the arrest valid? In what circumstances could the
recovery proceedings be initiated directors of the company? Discuss. (25 marks) [CLO4]

Goodbye and Goodluck!