Assessment MCQ Corrections Flashcards
Contains information I got wrong/missed on MCQ's
What type of resolution is required for a long-term service contract?
Ordinary
What is the fastest way to grant a long-term service contract?
Written resolution because you can’t shorten the in person version because a memorandum needs to be available for inspection not less than 15 days ending with the date of the meeting
What type of resolution is required to approve a loan to a director?
Ordinary
What must be made available for inspection before approving a loan to a director?
A memorandum setting out the nature, amount and purpose of the loan
What type of resolution is required to remove a director?
Ordinary
Can an incorporated company be considered a quasi-partnership regarding dismissal of a director and minority shareholder for an unfair prejudice claim?
Yes
What is a s 303 request?
A request the shareholders give to the directors to force them to call a GM
What is the deadline to call a general meeting after the shareholders serve a s303 notice?
21 days
What type of resolution is required to give directors authority to allot new shares?
Ordinary
What type of resolution is required to disapply pre-emption rights?
Special
What type of resolution is required to amend the articles?
Special
Is there a limit on authorised share capital for a company incorporated under CA 2006?
No
When do you not need to disapply pre
If you’re happy for them to apply
If there are already special provisions in the articles
What is the deadline for a company to pay its tax liability to HMRC?
9mo and 1 day
What capital allowance deductions are allowed to be deducted from income for corporation tax?
Plant and machinery 18% deduction on value each year
Plant and machinery 100% on new/refurbished up to 1million for any qualifying purchase each year
There are other deductions available like renovations etc, but they are ‘beyond the scope of materials’ and not considered in the MCQs
Does interest paid on loans count as deductible expenditure for corporation tax income?
Yes
Does renting property count as deductible expenditure for income tax purposes?
Yes
Do renovations count as deductible income expenditure?
No
What is reduced when applying roll-over relief? What is the gain ‘rolled into”?
The acquisition cost of the new asset it reduced by the amount of the gain
What is the difference between the full-expensing capital allowance and the annual capital allowance?
Full expensing is a special allowance applying between 1 April 2023 and 31 March 2026 that allows 100% expenditure on plant and machinery to be deducted WITHOUT A CAP
The only difference from the normal annual expenditure allowance is that annual expenditure is capped at 1 million and the full-expensing is basically a temporary economic boost attempt in place with no cap
In which business models are participants not liable for debts and liabilities of the business?
Companies
LLPs
What is double taxation of profits in context of a company?
The company pays corporation tax on its profits before the payment of dividends to its shareholders. The individual shareholders who receive the dividends will pay income tax on the amount of the dividend.
What individual taxes do partners pay out of their share from the partnership?
Both income and CGT
When you list a parent company, does it also list the subsidiaries?
No
What types of companies can offer shares to the public?
All public
Doesn’t have to be listed
When converting to a PLC when can you commence trading as a PLC?
Cert of incorporation
Trading certificate issued
If you have a deal to pay for shares over time and the company goes under, is your liability limited to the shares you’ve already paid for, or includes the ones you planned to pay for?
Includes the ones you planned to pay for
How can limited liability of a company be overridden?
Debtors can require a guarantee from the shareholders to incur their liabilty
Under default, how many partners need to agree to introduce a new partner?
All of them – unanimity
How can a partner be removed?
Unanimous consent
What liability to partners have?
Joint liability
All on the hook for the whole thing
How can members enforce articles?
Only through the company
What is the modern status of the memorandum?
The memorandum has no constitutional significance but it is required to be filed on incorporation. It simply amounts to a declaration on the part of the company’s subscribers that they wish to form a company and agree to become members of that company.
When does a company change of name become effective?
When the new certificate of incorporation is issued
Do you need to file the MA when incorporating?
No, they are automatically applied
What threshold of members need to vote in favour to pass a special resolution by written procedure?
75%
What threshold is required to consent to a short notice meeting?
OVER 90%
Do you need to register loan agreements with COMPANIES HOUSE?
No
Can directors appoint a new director?
Yes, by ordinary resolution
Do you have to tell companies house about a new director?
Yes, and within 14 days
To whom do directors owe duties?
The company
For a long term service contract, how long does it have to be?
Over 2y, 2y and 1 day
What % of shareholders are needed to require a general meeting?
5%
Which of the following is the most common remedy that the court will order in a claim for unfair prejudice?
An order that the company or the other shareholders purchase the petitioner’s shares.
In which one of the following circumstances is a stock transfer form required to transfer the shares to the new shareholder?
When an existing shareholder of the company gifts their shares to a family member during their life.
What type of resolution is required to allot new shares?
Ordinary
What kind of resolution is required to disapply pre-emption rights?
Special
In what document are the terms of redeemable shares set out in?
The articles
Can you advise on the merits of shares under the sale of body corporate exemption?
Yes
When determining which court should hear a case, is VAT included in the value?
Yes
What is the statement of truth for a director signing on behalf of a company
The Claimant believes that the facts stated in these particulars of claim are true.
The Claimant understands that proceedings for contempt of court maybe brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.
I am duly authorised by the Claimant to sign this statement.
Can you apply for a judgement in default if you did not comply with the pre-action protocol?
Yes
When considering whether to grant extensions, what will the court look at?
Overriding objective
Just and proportionate
Who is mostly responsible for costs arising from amendments?
The person who required the amendment
What formalities are required for answering a request for further information?
The client’s response should be in writing, signed, dated and be verified by a statement of truth.
Can you counterclaim against somebody other than the claimant?
Yes
