Miscellaneous 3 Flashcards
True or false, tax advisers are not required to monitor their clients’ compliance with the law according to Money Laundering regulations?
True
What is consideration defined as?
Something of value given by one person to create a contract with another
Edward is 75 years old and is making a Will. He does not want to leave his estate outright to his wife Bella, as he is concerned that she will fritter the money away.
His friend Tag told him that he could set up a trust as part of his Will which would allow the income from all of his estate to go to Bella for life, and then on Bella’s death, the estate would pass to their daughter Nessie.
What type of trust would need to be created to ensure that Edward’s wishes were satisfied?
A fixed interest trust
What are directors’ statutory duties?
To act within their powers
To promote the success of the company
True or false, a contract of guarantee must be in writing?
True
True or false, the guarantor in a contract of guarantee has primary liability?
False
True or false, a contract of guarantee must be evidenced in writing?
True
What is the rights of the existing shareholders to be offered new shares by the company known as?
Pre-emption rights
What does perpetual succession mean?
A company’s existence continues despite changes in membership
True or false, preference shares are a less risky investment than ordinary shares?
True
True or false, participating preference shareholders receive dividends at a fixed rate and then participate equally with other shareholders in any further dividend payable?
True
True or false, preference shareholders are entitled to receive a share in a surplus on winding up before ordinary shareholders?
False
For the purposes of capital gains tax, when may share capital be re-organised?
Where share rights are varied
There is a reduction in the company’s share capital
If you refuse to carry out your contractual obligations, what is this known as?
Repudiating the contract
What is substantive law?
The division of law that contains what is commonly understood to be the rules of law
What is the legal definition of theft?
Dishonest appropriation of property belonging to another, with the intention of permanently depriving the other of it
True or false, unpaid wages owed to an employee in respect of 6 months would not be classed as a preferential creditor if a liquidator is appointed?
True
True or false, money owed to a creditor which was borrowed by the company to pay wages would not be classed as a preferential creditor if a liquidator is appointed?
False
You schedule a meeting to reduce the share capital of your company in which a special resolution will be passed. How long before this meeting must the directors’ solvency statement be completed?
15 days
Miss Groves wishes to settle a large house on her nephew, Sebastian. She is concerned that Sebastian, who used to have a gambling problem, may sell the house if he runs into difficulties again. She would like to think that if Sebastian ever has children, the house would still be in the family in case he wished to pass it on to them.
Which two types of trust might be suitable for Miss Groves to set up in this situation?
A flexible life trust
A protective trust
What category of property does a leasehold fall into?
Chattels real
True or false, a proper understanding of the law is not a question of fact?
True
It is essential to identify taxable legal entitles. What types of media may entities be?
Media through which property is held
Media by which certain objectives are achieved
Media through which transactions are conducted
Vehicles adopted for the purposes of investment
What is an injunction?
An equitable remedy to abstain from wrongdoing
When do parties enter into a contract of sale for the sale of land?
The parties first enter into a contract of sale when the buyer pays a deposit of an agreed percentage of the purchase price
True or false, in a discretionary trust, the beneficiary has no right to compel the trustees to make a distribution?
True
True or false, in a discretionary trust which is exhaustive, the trustees must distribute the income?
True
What is the standard time limit for it to file its accounts with the Registrar?
9 months from the end of the company’s accounting date
A tenant signing a lease granted before 1 January 1996 would generally have liability for their own defaults and any defaults by which other tenants?
All future tenants under the same lease
True or false, listing a company will automatically give it PLC status?
False
True or false, it is not possible to list a private limited company?
True
True or false, the statement of capital must detail the number of shareholders?
False
True or false, the statement of capital must detail the number of shares issued by the company?
True
True or false, wills must be dated?
False
True or false, an interest in possession is a type of express trust?
True
How may articles be altered?
By ordinary resolution
When is a contract void due to a mistake?
If a fundamental mistake was unknown to both the parties that renders the contract void
True or false, LLPs have unlimited liability for its debts?
True
When does wrongful dismissal occur?
Where an employee’s contract of employment comes to an end as a result of a breach of contract by their employer
As an executor, what must be obtained to deal with the estate?
A grant of probate
True or false, a guarantee given to a subsidiary is a registerable charge?
False
True or false, a charge on a trademark owned by the company is a registerable charge?
True
True or false, parliament controls secondary legislation through the judicial review process?
False
True or false, parliament controls secondary legislation by subjecting it to scrutiny by the Joint Select Committee on Statutory Instruments?
True
True or false, a member’s voluntary liquidation is only open to solvent companies?
True
