RSA Module 2 Test

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Question 1 of 22

1. Question
SECTION 7.0 – THE BOARD OF DIRECTORS

7.1 Which of the following answers is correct?

The governing body is the body through which the organisation acts, and its main responsibilities are to ensure that the organisation operates within:
- Its Founding documentation
- The Companies Act.
- Trust Property Control act 57 of 1988
- Common Law.
- All applicable regulations promulgated.
- All of the above.
Question 2 of 22

2. Question
7.2

Which of the following key organisation information should governing body members receive upon their appointment is correct?
- Copy of the minutes of the AGM at which they were appointed.
- Copies of the founding document.
- Copy of the latest financial reports.
- Copy of the current business plan and budget.
- Minutes of all governing body meetings held in the previous year.
- Copy of the governing body Charter.
- Copies of contracts, agreements and undertakings of a major nature such as with sponsors and business partners.
- a, b, d & e only.
- All of the above
Question 3 of 22

3. Question
8.3 Is the following statement true?

The legal standard of conduct required of non-executive and executive governing body members of a Non-Profit organisation is the same.
- Yes
- No
Question 4 of 22

4. Question
8.4 Is the following statement true or not?

The main function of governing body members can be best described as exercising good stewardship over the plans, funds and resources of the organisation and their provident application towards the accomplishment of the declared purpose of the business.
- Yes
- No
Question 5 of 22

5. Question
8.5 Which of the following statements is incorrect?

The main duties of governing body members individually are to:
- Perform their duties with utmost loyalty, good faith, care, skill and attentiveness.
- Devote time to their governing body duties so that they can effectively perform their role and work to the level expected of them.
- Be satisfied that they have sufficient information and time to make responsible, well-informed decisions.
- To disclose any personal financial interests to the governing body.
- Act in the best interest of the organisations or people who nominated them to the governing body on which they serve.
Question 6 of 22

6. Question
8.6 Which of the following statements is incorrect?
- Governing body members are entitled to rely on the advice of employees whom are deemed reliable and competent.
- Governing body members have the right to present their views and to table any information they have which has bearing on matters under discussion at governing body meetings.
- Governing body members may not divulge confidential information about the organisation without prior approval of the governing body.
- Governing body members may rely on the advice of professional persons even though they do not merit confidence.
- Governing body members may not make any personal gain by way of commission, gift, or profit from the organisation.
Question 7 of 22

7. Question
8.7 Which of the following statement is incorrect?

Governing body members of non-profit organisations are not liable if they:
- Comply with the legal standard of conduct laid down in the relevant legislation and common law.
- Comply with the provisions of the founding document.
- Declare any personal financial interests.
- Did not attend the governing body meeting at which an issue was presented.
- Adhere to the code of good practice.
Question 8 of 22

8. Question
8.8 Which of the following statements are correct?
- Governing body members should become knowledgeable about the political, economic, social, technological and industry environment in which their organisation operates.
- Governing body members must not act outside of their limits of responsibility.
- Their limits of responsibility are only set out in the governing body charter, the Corporate Governance Study guide or the organisations founding document.
- a), b) and c)
- (a) and (b) only
Question 9 of 22

9. Question
8.9 Is the following statement true or not?

It is the responsibility of governing body members to ensure that adequate and proper accounting records are maintained.
- Yes
- No
Question 10 of 22

10. Question
SECTION 9.0 – THE CHAIR

9.1 Is the following statement true or not?

Although there is no legal requirement for the governing body to have a Chair, the standard founding document for the establishment of the organisation usually provides for the appointment by the governing body members of a Chairperson from among their number.
- Yes
- No
Question 11 of 22

11. Question
9.2 Which of the following statements is incorrect?
- The Chairperson, or Chair, is expected to preside over governing body meetings and has a casting vote.
- The primary function of the Chair is to ensure the smooth and effective functioning of the governing body.
- The King Report recommends that the roles of CEO and Chair be
  separated.
- The Chair must be an executive governing body member of the organisation.
- The Chair is not responsible for the appointment of governing body members to the governing body.
Question 12 of 22

12. Question
9.3 Which of the following functions is not the responsibility of the chair?
- To ensure that the governing body is rational and objective in all its deliberations.
- To ensure that governing body members always act in the best interest of the organisation and its aims
- To ensure that managers and employees carry out their tasks and duties.
- To ensure that the setting and climate for governing body meetings is conducive to the professional engagement of governing body members with each other.
- To ensure that time spent at governing body meetings is productively applied and that non-relevant discussions, do not intrude into the agenda.
- To ensure that governing body procedures and protocols are followed and that governing body members display due respect for the rights and views of all members of the governing body.
- To ensure that all governing body members apply their minds and participate in the deliberations and decisions of the governing body.
- To ensure that the code of corporate governance is understood, applied and adhered to by the governing body members.
Question 13 of 22

13. Question
7.3 Which of the following answers is incorrect?
- Governing body members of membership organisations are usually appointed by the members of the organisation.
- The Companies Intellectual Property Commission must be notified of the appointment of all governing body members
- The governing body members must ensure that the organisation prepares annual financial statements.
- The role and duties of governing body members is so general and widely understood that no thought need be given to the possibility that they might fail.
Question 14 of 22

14. Question
9.4 Is the following statement true or not?

If in the considered judgement of the Chair, the governing body is not sufficiently informed on a matter before it, the decision can be delayed or the meeting adjourned until sufficient information can be obtained.
- Yes
- No
Question 15 of 22

15. Question
9.5 Decisions taken by governing body members are in most cases by “tacit majority.” Does this mean that a vote has to be taken before each governing body decision can be made?
- Yes
- No
Question 16 of 22

16. Question
7.4 Is the following statement correct?

A Non-Profit organisation must keep minutes of meetings of governing body meetings for a period of seven years after the date of each such meeting.
- Yes
- No
Question 17 of 22

17. Question
7.5 Which of the following statements is correct?
- Notice and agenda of a governing body meeting need not be sent in advance.
- Governing body members must rely on the minutes of governing body meetings as their ‘to-do’ list.
- If a Director is not present at a meeting he is not responsible for any decisions taken.
- The quorum for a governing body meeting and voting protocol is set out in the founding document.
- All decisions taken by a majority of governing body members present will constitute a governing body meeting decision.
Question 18 of 22

18. Question
7.6 Is the following statement incorrect?

The standard of conduct for governing body members (directors), as laid down in the Companies Act of 2008, is different for governing body members individually and as a governing body collectively.
- Yes
- No
Question 19 of 22

19. Question
7.7 Which of the following statements is correct?

The main functions of a governing body are as follows:
- To ensure that a strategic plan is in place and being implemented by management.
- To ensure that the plans adequately address the main purpose of the organisation.
- To ensure that the organisation has sufficient funds for its creditor obligations and operations.
- To ensure that the organisation has adequate systems of operational and and financial controls.
- To select a senior executive and appoint new governing body members in event of removal or resignations from the governing body.
- To ensure that all requirements for transformation, representativeness, delivery and fidelity applicable to the organisation, both statutory and contractually are being satisfied.
- All of the above.
Question 20 of 22

20. Question
7.8 Which of the following statements is incorrect?
- The governing body must not exceed the organisations power under its Founding document.
- Governing bodies are free to determine their own limits of authority.
- The organisations resources and assets may only be applied for proper purposes in terms of its Main Object and approved plans.
- All of the above.
Question 21 of 22

21. Question
SECTION 8.0 – DUTIES AND RESPONSIBILITIES OF A GOVERNING BODY MEMBER.

8.1 Is the following statement true?

Governing body members collectively are responsible for the direction of the organisation and, where applicable, are also accountable to the members of the organisation.
- Yes
- No
Question 22 of 22

22. Question
8.2 Is the following statement true?

A governing body member who disclosed a personal financial interest at meeting of the Governing body is not required to leave the meeting after having made a full disclosure.
- Yes
- No

RSA Module 2 Test

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1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

SECTION 9.0 – THE CHAIR

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

SECTION 8.0 – DUTIES AND RESPONSIBILITIES OF A GOVERNING BODY MEMBER.

22. Question