Miscellaneous 5

Question 1

How can a reduction of share capital be achieved for a private company?

Answer 1

Only if its articles allow it, its shareholders pass a special resolution and a court approval is obtained OR a solvency statement (15 days in advance of the resolution)

Question 2

What is the maximum length of time for which a private company may exclude pre-emption rights?

Answer 2

Pre-emption rights may be permanently excluded

Question 3

When does a lease need to be registered with the Land Registry?

Answer 3

If it exceeds 7 years

Question 4

For each accounting reference period of a company, the directors must prepare what?

Answer 4

A balance sheet
A profit and loss account
Group accounts where relevant

Question 5

When a company goes into liquidation, what type of ownership does the liquidator get?

Answer 5

Beneficial ownership

Question 6

What happens where there is fraudulent misrepresentation?

Answer 6

The contract is voidable

Question 7

True or false, a public company may choose to listed on the Alternative Investment Market?

Answer 7

True

Question 8

What is essential to make a valid deed?

Answer 8

There must be a written document
The document must be signed by the person making it
The promisor’s signature must be witnessed

Question 9

What is a call option?

Answer 9

An option to purchase, whereby the buyer can trigger the contract and require a sale

Question 10

True or false, one of the crown’s four main functions is to oversee parliament?

Answer 10

False

Question 11

True or false, one of the crown’s four main functions is to run the agencies that enforce the law?

Answer 11

True

Question 12

All data controllers which process personal data about data subjects must be registered with the ICO. Failure to comply with the GDPR principles can attract a fine.

Which two of the following are ways in which the fine can be calculated?

Answer 12

4% of business’s annual worldwide turnover
Up to £17 million

Question 13

Morgan commences employment with Bill Ltd on 1 September 2021.

By what date should Morgan’s employer usually provide him with a written statement setting out certain terms of the contract?

Answer 13

1 September 2021

Question 14

Which two documents need to be sent to the Registrar in order to register the LLP?

Answer 14

Statement of compliance
Incorporation document

Question 15

True or false, a couple can be separated under a court order, known as a decree of judicial separation?

Answer 15

True

Question 16

True or false, it is a duty of the trustee to act impartially between beneficiaries?

Answer 16

True

Question 17

True or false, wills must be in writing?

Answer 17

True

Question 18

What are the criteria for a patent?

Answer 18

It must be functional
It must be new
It must have industrial use

Question 19

What can limited partners not do?

Answer 19

Withdraw their capital
Take part in the management
Contract with a third party
Dissolve the partnership by notice

Question 20

True or false, ways and means resolutions do not have force of law?

Answer 20

True

Question 21

True or false, ways and means resolutions are agreed after a finance bill is introduced at the first reading?

Answer 21

False

Question 22

True or false, the information held on the trust register includes the nature and value of the trust assets and details of the legal ownership?

Answer 22

False

Question 23

Is a marriage void or voidable if it is under duress?

Answer 23

Voidable

Question 24

What does a special resolution require?

Answer 24

14 days notice and 75% majority, filed within 15 days