Corparate offences

Question 1

Explain the term Fradualt activity

Answer 1

The term fraudality Activity means any person or knlowly person carry on business of a company with the intention of defrauding the creditors of the business

Question 2

List the sanction of Fraudalut activity

Answer 2

The sanctions of fraudalty activites includes the following fines and imprison,on indictment a person could receive 10 years in prison or 500,000 fine.

In a civil manner.the individual could have to repay the personalliabilty back for all damages that have occer due the fraudulent activity.

It is a class 1 offence

Question 3

Describe one fraudulent case with the date

Answer 3

Durty nellies pub 1985
Pub valued at 750,000
Sold for 480,000
200,000 was privating paid
The isolated translation was the fraudulent activity

Question 4

Explain the term Reckless trading ?

Answer 4

The term reckless trading refers back to the company officer conducting business of the company in a reckless mannye.THeses individuals include directors,recivers ,audios,liquidators.They are negligent and careless.They know there actions has the ability to cases the ocmpnay to lose a creditor .They are a party of conducting of the debit,they have reasonable believe on grounds thatthe company could repay the money.

Question 5

Describe a Reckless trading cases

Answer 5

RE-Doerty advertising 2006
The company collapses due to reckless trading -the receiver sums two former directslwi s 2.2 million in damages and also directors received disqualification

RE-eastland warehouse 2003
The director disappointed large sums of money
Personal liability for 1.5 millon for the dmaegs caused.

Question 6

Describe the process of money laundering!

Answer 6

Placement-place in a legutmeny business or property
Layering-moving it from place to place
Integration-it seems to be lefitment in a business or propery

Question 7

List the sanctions for money laundering

Answer 7

Summary offence-12 months in prison or 5000 fine
Indictment offence-14 years in prison or unlimited fine

Question 8

Explain the contents of the code

Answer 8

Leadership
Effectiveness
Accountanility
Reunmeration
RElations with shareholders

Question 9

Explain inside trading

Answer 9

Inside trading is when price sensitive information is acquired by an inside source with the objective of making a profit or prooventing a loss

Question 10

Who can be an insider trader ?

Answer 10

Any person who interatcs with financial instruments such as bonds,shares and securities debt can be an inside trader.
Anyone is management
Holders of capital
Access to information as employee duties
Criminal Activities

Question 11

Describe the term leadership ?

Answer 11

Should have an effective board acting in the best interests of the company
*Sufficiently regular board meetings
*The board sets the values and standards that are espoused by the company and should ensure that it meets its obligations to shareholders and others
*Clear division of responsibilities between the running of the board and the running of the business

Question 12

Explain the meaning of insider trading ?

Answer 12

Inside training is the price sensitive information used with a movite to make a profit or to reduce a loss.tHIS INFORMATION IS USED BY Invesors to make a decision on whether they should invest or not.This has direct and indirect effect on the price of goods and services.This information is not made public as it has the ability to drastically affect the price.

Question 13

Explain the term finianical instruments

Answer 13

The term financial instrument refers to transferable securities such as bonds ,shares and securitised debts.

Question 14

Describe the term effectiveness

Answer 14

Composition of the board
– Balance of skills experience, independence and knowledge
* Appointments to the Board
– Formal, rigorous, and transparent
* Commitment – devote sufficient time
* Development – update and refresh skills and knowledge
* Information and Support – timely provision
* Evaluation – formal and rigorous review
* Re-election – planned and progressive refreshing of the boards

Question 15

Describe the term effectiveness

Answer 15

Composition of the board
– Balance of skills experience, independence and knowledge
* Appointments to the Board
– Formal, rigorous, and transparent
* Commitment – devote sufficient time
* Development – update and refresh skills and knowledge
* Information and Support – timely provision
* Evaluation – formal and rigorous review
* Re-election – planned and progressive refreshing of the boards

Question 16

Describe the term Accountabiltiy

Answer 16

Financial and Business Reporting
– Present a balanced and understandable assessment meeting
statutory requirements
* Risk Management and Internal Control
– Sound system of risk management, to include, financial,
operational and compliance controls
* Audit Committee and Auditors
– Establish an audit committee of independent non-executive directors to monitor the integrity of the financial statements

Question 17

explain the term Renumeration

Answer 17

Sufficient to attract, retain, and motivate directors of the required quality
Link rewards to corporate and individual performance Formal and transparent procedure

Question 18

Explain the term relations to shareholders

Answer 18

Relations with Shareholders
* Chairman must ensure that the views of shareholders are communicated to the board
* Board should use AGM to communicate with investors.