Business Law Flashcards
What are the different types of company incorporated under the Companies Act 2006?
Registered companies:
- may be limited or unlimited
- may be public or private
In what way can a change in the company’s articles of association take effect?
What are the three types of authority a partner may have?
(In the context of entering into transactions on behalf of the firm):
1. Actual - authority which is expressly granted
2. Implied - authority which can be implied from the nature of the role
3. Apparent or ostensible - authority of the director as it appears to third parties.
What is the earnings per share ratio? (EPS)
The proportion of a company’s profit allocated to each outstanding share. It serves as another indicator of the company’s profitability.
A company with a high EPS ratio is capable of generating a significant dividend for investors.
What is the procedure for allotting shares where the company has more than one class of share?
Can either be granted by a provision in the articles or an ordinary resolution of the members.
What are the Transfer of Undertakings (Protection of Employment) Regulations 2006?
If the business of a company is sold by way of an asset sale, any existing contracts of employment will generally transfer to the new owner in accordance with TUPE.
