Corporation and Legal Personality

Question 1

What does the veil of incorporation mean?

Answer 1

The company is a separate legal entity

Question 2

What must an LLP send to the Registar when setting up?

Answer 2

A declaration of compliance

Question 3

How many designated members must there be in an LLP?

Answer 3

At least 2

Question 4

Does an LLP pay corp tax?

Answer 4

No

Question 5

If an LLP goes into liquidation, how many years back can the court order the members to repay their drawings?

Answer 5

2 years

Question 6

What is the liability of the members of an LLP limited to?

Answer 6

The amount of capital they agreed to contribute

Question 7

Can a partnership create either floating or fixed charges?

Answer 7

Only fixed charges

Question 8

What is the minimum value the shares must be in a public limited company?

Answer 8

£50,000

Question 9

What nominal value of the shares in a public limited company must be paid up?

Answer 9

25%

Question 10

What must a plc wait for before trading?

Answer 10

Trading certificate from the Registar

Question 11

How many directors must a plc have?

Answer 11

At least 2

Question 12

Does a private limited company need a secretary?

Answer 12

No

Question 13

When must a plc file their accounts?

Answer 13

Within 6 months of the year end

Question 14

Does a private limited company need to hold an AGM?

Answer 14

No

Question 15

Which type of company can pass written resolutions?

Answer 15

Private limited companies

Question 16

With what resolution can a company change their name?

Answer 16

Special resolution

Question 17

What majority is needed to pass a special resolution?

Answer 17

75%

Question 18

How long must records regarding resolutions and meetings be kept for a plc?

Answer 18

10 years

Question 19

Within how many days must a confirmation statement be filed when the last one has expired?

Answer 19

14 days

Question 20

How long must accounting records be kept for private limited companies?

Answer 20

3 years

Question 21

How long must accounting records be kept for public limited companies?

Answer 21

6 years

Question 22

Do the articles of association have to be submitted when creating a new company?

Answer 22

No - there are model ones that can be used