Chapter 1 - Introduction To Company Law Flashcards

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1
Q

What are the 4 key components of corporate law?

A

1 Company Law
2 Securities Regulation
3 Insolvency Law
4 Corporate Governance

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2
Q

Why is insolvency law relevant to company law?

A

Because companies do not exist forever, and at some point need to be wound up or liquidated.

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3
Q

Why is securities regulation relevant to company law?

A

Securities regulation protects investors.

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4
Q

What is corporate governance?

A

Corporate governance can mean different things at different times, but is typically the way in which companies are managed.

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5
Q

What are the two primary sources of company law?

A

Legislation

Case Law

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6
Q

Name 7 statutes relevant to company law and which is the most important?

A

CA 2006 (most important)
IA 1986
Company Directors Disqualification Act 1986
FSMA 2000
CA 1985 (company investigations)
CJA 1993
Companies (Audit, Investigation and Community Enterprise) Act 2004

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7
Q

Since when has it been possible tor register a company using a relatively straightforward process?

A

Since the passing of the Joint Stock Companies Act 1844

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8
Q

What are the principal arguments for allowing limited liability?

A
  • encourages investment
  • facilitates transferability of shares
  • provides clarity and certainty as to the assets available to creditors.
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9
Q

What are the principal arguments against allowing limited liability?

A
  • could facilitate recklessness

- allows complex limited liability structures in large group companies.

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10
Q

When was a legal distinction drawn between a private and public company?

A

The CA 1907

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11
Q

What steps have been taken at EU level relating to company law?

A
  • providing equivalent protection for EU shareholders
  • ensuring freedom of establishment for companies
  • fostering efficiency and competitiveness of business.
  • promoting cross-border cooperation between companies
  • stimulating discussions between member states on the modernisation of company law and governance
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12
Q

Name three EU company structures.

A

Societas Europaea
European Economic Interest Grouping (EEIG)
Societas Privata Europaea

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13
Q

What aim was the EU Financial Services Action Plan drawn up to pursue?

A
  • enhancing transparency
  • encouraging shareholder engagement
  • improving the framework for cross-boarder company operation
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14
Q

Which UK body fulfils the role of “UK Listing Authority”?

A

The FCA

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