Chapter 5 - Company Compliance Flashcards

1
Q
Certain words and expressions require consent before they may be used as part of a company name. Which of the following require consent?
Britain
‹‹French
Accountant
‹‹Insurance
‹‹Royal
A
‹‹Britain - Yes
‹‹French - No ‹‹
Accountant - No 
‹‹Insurance - Yes 
‹‹Royal - Yes
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2
Q

What are the different types of company that can be incorporated under the Companies Act 2006?

A

Public company limited by shares
Private company limited by shares
Private company limited by guarantee
Private unlimited company, with or without a share capital

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3
Q

Why must a public company apply for a certificate under CA2006
s. 761 before it starts trading?

A

To ensure that the amount paid up on the aggregate nominal value of its issued share capital is not less that the authorised minimum

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4
Q

Hard copy, paper filing is available for all statutory forms and documents. What other methods of filing these documents are there?

A

Online filing
WebFiling
Software filing

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5
Q

Does it matter to which Companies House office documents are delivered?

A

No, as any documents filed at one registry that relate to a company registered at another will be forwarded

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6
Q

Is it sufficient to post documents to Companies House prior to the expiry of the appropriate filing period?

A

No – the requirement is that they must be received, and be acceptable for filing, prior to the deadline

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7
Q

What is the comply or explain principle?

A

Listed companies should apply the principles of the UK Corporate Governance Code and explain any non-compliances with the provisions of the Code

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8
Q

What are the five categories covered by the Governance Code?

A
Board Leadership and Company Purpose 
Division of Responsibilities
Composition, Succession and Evaluation 
Audit, Risk and Internal Control 
Remuneration
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9
Q

What is the benefit of acquiring at least 90% acceptances on a takeover?

A

Achieving the 90% threshold permits an acquiring company to compulsorily acquire all remaining shares on the same terms if it wishes

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10
Q

The City Code applies to what type of company?

A

All public companies or companies that have been public in the previous 10 years

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11
Q

What is the significance of a share offer being conditional on reaching acceptance of 50%, 75% or 90% of the issued shares?

A

These thresholds provide different degrees of control:
50% allows the holder to pass all ordinary resolutions and is treated as the holding company for accounting provisions
75% permits the passing of special resolutions as well as ordinary resolutions and gives control to the holder
90% is the level at which dissenters in a takeover can be acquired

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12
Q

How long after ceasing to trade can an application for dissolution be made?

A

Three months

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13
Q

What action might occur if the Registrar believes a company is defunct?

A

The Registrar may take action to strike the company off the register and dissolve it

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14
Q

Which of these activities disqualifies a company from being able to file dormant company accounts?

  1. A late filing penalty being imposed on ABC Ltd, an authorised insurance company.
  2. Payment for the amounts due on the subscriber share relating to XYZ Ltd.
  3. A dividend being paid by a non-trading entity?
A
  1. A late filing penalty being imposed on ABC Ltd, an authorised insurance company.
    No
  2. Payment for the amounts due on the subscriber share relating to XYZ Ltd.
    No
  3. A dividend being paid by a non-trading entity?
    Yes
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