FORMS & GOVERNANCE Flashcards
Lectures 1 & 2, Tutorial 1
Accurately list the documents required to be sent to the Registrar of Companies House in order for a company to be registered in the UK? (7)
- Statement of capital.
- Statement of initial shareholdings or guarantee.
- Statement of company proposed officers.
- Statement of initial significant control.
- Statement of compliance.
- Memorandum of association.
- Proposed articles of association.
What does ‘limited liability’ mean?
The liability of a company’s members is limited by the constitution to the amount, if any, unpaid on the shares held by them.
What is ‘nominal’ share capital?
The arbitrary book value of a share for the administrative purposes of initial issue.
How will public interest enterprises be defined under reforms proposed by the UK government?
A company with 750 employees and more than £150 in revenue.
What is a CLG?
A company in which the members have agreed to pay a set amount of money towards liabilities.
What is the role of a director?
They are agents of the members, officers of the company, and often (but not always) employees of the company.
What does the UKGC not specifically cover?
The alignment of investor values. Instead, they cover effective succession planning for the board and senior management, gender & ethnic diversity of the board, audit, risk, and internal control.
What is ‘comply or explain’?
The statement required by the FCA for limited Plcs to issue shares on the LSE’s main market.
What is NOT a criticism of stakeholder theory?
Many stakeholders don’t have contractual protection, or the protection afforded by the fiduciary duties of directors.
What legislative provision prevents private limited companies from offering their shares to the public?
Companies Act 2006 section 755.
