SGS 2 Flashcards
1
Q
What cannot be passed as a written resolution?
A
Removal of a director or auditor (s.288(2)(a)&(b)).
2
Q
Relocation of registered office?
A
no reference in CA to any type of resolution, so directors can pass a board resolution using powers under MA 3.
s.87(1).
3
Q
Liability benefit of group company structure?
A
Subsidiaries are separate legal persons - if one becomes insolvent, others not liable to contribute any money towards their debts.
4
Q
Group company structures - non-financial benefit?
A
Different expertise or business functions / separation of ownership or management.
5
Q
Two more group company structure benefits?
A
Tax efficiency
Easier to sell or dispose of certain parts of the business or acquire other parts of the business
