Company Formation and Administration

Question 1

Authorised Share Capital

Answer 1

Represents Max number share can be issued by company

Question 2

Issued Share Capital

Answer 2

Represents total issued shares

Question 3

Free Float Share Capital

Answer 3

Represents Shares held in Public Hands

Question 4

Board of Directors

Answer 4

Manage company

Non - Executive Directors in place to monitor Executive Directors

Question 5

PLC s

Answer 5

Public Limited Companies

2 shareholders needed to be incorporated through Companies House

Question 6

LTD s

Answer 6

Public Limited Companies

1 shareholder needed to be incorporated through Companies House

Question 7

Memorandum of association

Answer 7

External

Info about company in relation to outside world

examples; 
Name 
Country of Domicile
Objects 
PLC Status
External Parties

Question 8

Articles of association

Answer 8

Internal

Details Company’s internal regulations

Examples; 
Proceedings at general and annual board meetings 
voting rights 
borrowing powers
Powers of directors

Question 9

Annual General Meeting (AGM)

Answer 9

• Shareholders quiz management and vote on company business

- PLC must call pithing 6 months of financial year end

Question 10

Who has the right to call AGM meetings

Answer 10

The Board

• If at least 10% of Shareholders can force AGM

Question 11

Notice time for AGM

Answer 11

AGM - 21 day’s notice

EGM - 14 days notice (Extraordinary )

Question 12

Types of Resolutions for AGM

Answer 12

Ordinary (more than 50% of voting shareholders)

Special (At least 75% of voting shareholders)

Question 13

Ordinary Resolutions consists of

Answer 13

Discussed every Year

• Appointing Directors / Auditors
• Account approvals
• Dividends

Question 14

Special Resolutions consists of

Answer 14

Takeover

Share buy back

Changing Docs (e.g. Articles of association)