sole traders and partnerships

Question 1

for a partnership, how many of the partners need to agree to a change in business?

Answer 1

must be a unanimous decision

Question 2

for a partnership, how many of the partners need to agree to a new partner joining?

Answer 2

must have unanimous consent

Question 3

does a partnership have to register to come into existence?

Answer 3

no, it starts from the date that joint business activity starts

Question 4

How many designated partners is a limited liability partnership required to have?

Answer 4

2

Question 5

If an LLP enters into a contract, who is liable on the contract?

Answer 5

The LLP only

Question 6

can a retired partner be liable for contracts formed after their retirement?

Answer 6

yes, if notice is not given of their retirement

Question 7

Who can enforce rights given in the articles of association?

Answer 7

The company
Shareholders of the company
(not employees)

Question 8

what type of resolution must be used to remove a director?

Answer 8

ordinary resolution with special notice

Question 9

can preference shareholders share in surplus assets?

Answer 9

no

Question 10

must public companies make their shares available to the public?

Answer 10

They may but there is no obligation

Question 11

how much share capital is needed for a public company to be created?

Answer 11

issued share capital of at least £50,000, but only 25% (£12,500) needs to be paid up

Question 12

what are the conditions for a property transaction to be substantial (CA2006)?

Answer 12

More than £5,000
More than 10% of company’s asset value

OR

More than £100,000

Question 13

can partnerships grant fixed charges, floating charges or both?

Answer 13

only fixed charges