Theory Flashcards

Question

What share parentage earns what rights?

Answer 1

With 5% Shareholding You have the right to call a general meeting (s303 CA) ANd the right to circulate a written statement (s314) With 10% shareholding You have the right to demand that the company’s accounts be audited (s476, CA2006) With 25% shareholding You can block any special resolution (s283, CA 2006) This means you have the power to prevent a company's articles from being amended (s21, CA 2006) With 50% shareholding You can pass and block any ordinary resolution Wit 75% shareholding You can pass nay special resolution With 100% shareholding You can pass an elective resolution You can entrenched provision You can basically do anything within the company

Answer 2

All company shareholders have the right to: Transfer their shares to other parties (subject to any restriction in articles) Receive all dividends declared b the company - in theory there's no limit to the size of dividend (provided the company has equity) Attend and vote at general meetings Receive the company accounts As one’s shareholding increases, this also increase level of control that you =have in the coat This gives you the right to specific actions relating to the company Individual shareholders may group together to pass or block certain resolutions Preference shares Named because they contain the right to receive a dividend before an ordinary shareholder The dividend will be of a fixed percentage each year, providing the company chooses to offer the dividend Can be cumulative or non-culmative Cumulative means that if dividend is not paid one year, it carries forward the next year Usually do not carry any voting rights, so shareholders do not java control of company in that respect Can vote when it has to do with preference shares If company winds up preference shareholders have priority in their return of capital

Answer 3

Debentures are the written documents setting out terms of a loan (rate of interest, schedule of repayments etc) Usually higher interest than a bank loan Can be secured or unsecured As with shares can be transferred (debentures for plcs can be delta on the stock exchange) Some debentures of the right to convert to shares on maturity As an investment, offers a consistent rate of return, therefore less risky purchasing shares Eg seat at royal albert hall - attraction and loan

Answer 4

A charge is a contractual agreement in the form of security (on certain assets) for a loan The borrower agrees to follow the rights over assets to be transferred to the lender, on the basis that if the loan is unpaid, the lender can dispose of the assets and secure the return of he loan Charges are valuable way of ensuring that loans are secured on tangible assets

Answer 5

The charge is fixed to particular asset Asset may be real property or personal property Real property consists of items such as property or land While a charge rests over real property the borrower cannot dispose or significantly alter the asset Personal property includes equipment, chattels etc Requires the burrower to assign ownership of the property with the lender This means, in the event of non payment, the land has the power to dispose of the property Fixed charges are more attractive to the lender, as the control they have over the property represents the best form of security Charge remains until the loan is fully repaid Lenders with fixed charges rank higher preferential creditors and floating charge lenders

Answer 6

WIth floating charges, the change may apply to a group of assets Eg inventory and milk. It is unable for tesco to inform the lender for every mlk sold The borrower is free to trade in the goods/ assets subject to the floating charge In the event of non-payment, the charge crystallises over certain assets Everything is frozen, so tesco can no longer sell the milk The lender then has the ability to dispose of them

Answer 7

CA 2006 - s 870 A charge must be registered within 21 days of its creation The register will then issue a certification of registration, including details of its particulars (CA 2006, s 869) If a charge is not registered it will be invalid

Answer 8

See part 10 of CA 2006 Responsible for the management of the company Agent of the company Can bind the company by their acts without personal liability (CA 2006, s40) Anyone not under 16 years of age (CA 2006, s157) But certain [people may be disqualified (CDDA 1986) or the articles may prohibit certain people from being directors Can have a corporate directors i.e. a company can be a director, nut there must be at least one living person as a director (CA 2006, s 155)

Answer 9

The board generally meet at board meetings (CA 2006 s 248) but decisions can be made remotely Has overall responsibility for managing the affairs of the company Certain decisions have to be taken by the board e.g. approving annual accounts, recommending a dividend to shareholders

Answer 10

Managing director (executive director) Sales director (executive director) Finance director (executive director) Alternate director Acting in place of a director who is not able to attend the meeting) ‘De Facto’ directors Person acting as director although not appointed as one Shadow director The board acts under his decisions Non- executive director

Answer 11

Executive director: Those that have management responsibilities within the company (such as managing director, operations director, finance director etc) May work full time at a company but not a;lways (eg corporate directors) If they do work, will have contract of employment, meaning they are employees of the company Non-executive director: Not employed by the company Don't receive a salary (but may be paid a fee per board meeting, for example) Role is to check company is being managed properly and ensure high standards of financial integrity Share the same liabilities as executive directors

Answer 12

A shadow director instructs the other directors of the company on how to act Can be a natural or corporate person A parent company may be shadow director for its subsidiary A management consultant for a major creditor could also be considered a SD, but not those who give advice in professional capacity (eg an accountant) Eg if i were to start a business and my dad advises me, he is a shadow director

Answer 13

Those who are not formally appointed as a director (so they won't be listed in Companies House) but they fulfil the role of a director Can be difficult to determine whether someone is acting as director from their tasks and responsibilities in the company If judged to be a director, will be subject to the same duties and liabilities

Answer 14

If a director is unable to attend a board meeting, they ,ay eb allowed to appoint someone to attend and vote on their behalf It depends on what the articles allow Usually the alternate director is a fellow director rather than an outsider

Answer 15

First directors of a company stated in incorporation documents -= no appointment necessary Procedure for appointing new directors should be stated in articles Usually directors are appointed by directors or by simple majority at a general meeting Normally for public companies, the appointment is for a set number of years Then there is a vote to re-appoint at the next AGM For public companies, appointment of directors is to be voted on individually at general, meeting (CA2006, s160)

Answer 16

Company can only act through agents When a director(s) enters into a contact on behalf of the company, it will be binding on the company Authority can be explicit or implied (eg an MD) Directs may also have apparent authority

Answer 17

Safety measures protect the company from directors misusing their powers Now codified in Companies Act 2006, s 171-177 Were previously found in the common law rules Most of these related fiduciary duties i.e. those relating to trust and confidence

Answer 18

S171 - A duty to act within powers S172 - A duty to promote the success of the company S 173 - A duty to exercise independent judgment S 174 - A duty to exercise reasonable skill, care and diligence S 175 - A duty to avoid conflict of interest S 176 - A duty to not accept benefits from third parties S 177 - A duty to declare an interest in any proposed transaction or arrangement with the company

Answer 19

Director will b e required to make up any losses incurred by the company Any secret profit gained by a director (eg by not disclosing an interest in an arrangement) can be claimed by the company If more than one directors is in breach, the liability is joint and several So the company can take action against any of all directors

Answer 20

Covered in the CDDA 1986 The act allows a court to disqualify any person from being a director (and certain other roles) Prevents failed directors rom creating new companies without incurring personal liability CDDA 1986 outlines situations that may result in disqualification, such as: Conviction of serious offence in relation to company Fraudulent trading on the winding up of a company Fraudulent trading on the winding up if a company Wrongful trading Consistently failing to comply with company legislation requirements (filing accounts, returns etc. If a company become insolvent due to directors actions, can be very subjective whether their actions warrant disqualifications

Answer 21

A director can be removed during their term of office via ordinary resolution at a general meeting (CA, s 168) If a shareholder wants to propose a removal of a director, needs to give 28 days’ notice before the meeting (special notice) It is possible to have weighted voting rights which protect directors from removal by ordinary shareholders See Bushell v Faith (1970) If the director has a contract of service with the company, this may result in a breach of contract Usually, director is asked to resign and then terms of dismissal can be negotiated This is more preferable than going through formal removal process

Answer 22

Directorship will also cease if: The director dies The director is no longer physically or mentally capable They have been AWOL from board meetings for a set period of time The company goes into liquidation For the above three cases, there still needs to be a positive act to remove that director

Answer 23

by the articles (for fees paid to an NED) by a contract of service (for salary paid to an ED) A service contract must be kept by the company for shareholders to inspect

Answer 24

Plcs must have one (s 271), Ltds can have one but not required (s 270) Could be one of the directors Responsible for administrative duties Potentially liable in criminal and civil law for failing to meet any statutory requirements (such as filing company accounts)

Answer 25

Some who fulfil any one of the following criteria: Has been a secretary of a plc for at least 3 of the last 5 years Is a qualified UK lawyer Is a member of a certain professional body (mostly accounting bodies) Has relevant experience being a holder of another office or body Because the knowledge that they hold, they are heavily relied on (how a lot about com pay law)

Answer 26

Board meeting (directors only) Annual general meeting General meeting Class meeting

Answer 27

Quorum at a board meeting is the minimum number of directors in attendance required for decision to me made Model articles fix quorum at 2 (section 11), but can be set to a higher number

Answer 28

Responsible for providing an agenda and facilitating the meeting Often will have the casting vote if there is a deadlock Isn't necessarily the MD, sometimes beneficial to have someone else Usually will be one vote per director, but articles may state otherwise Directors and auditors have right to impact minutes of meeting For public companies - meetings must be held to pass resolutions For private companies - most decisions can be made without passing resolutions

Answer 29

Public companies must have AGM, private companies can have one but it isn;t obligatory For public companies, they must hold their AGM within 6 months after the financial year-end (CA 2006, s 336) Officers of public companies can be prosecuted for failing to hold AGM

Answer 30

The board reports on the events that have occurred in the company over the last 12 months, with any future prospects Shareholders can put any questions to the board and viote i certain matters The annual report/account need to be approved by the shareholders Shareholders approve any officer and/or auditor appointments or re-appointments The baird declares the dividends offered to shareholders

Answer 31

As with AGM, all shareholder and directors invited A general meeting can be called By the directors at any time(CA 2996, s 302) Where there has been a serious loss in capital in the company (CA 2006, s 656) By shareholders that have at least 5% of the share capital/voting rights (they can also propose resolutions) - CA 2006, s 303 1000 word statement allowed to be draft By the auditors if they plan to resign (CA 2006, s 518) By the court if the directors are unable to call a meeting

Answer 32

May exist when a company has more than one class of shareholders (Class A, Class B etc) May be necessary to call a meeting when the agenda (and the attendance) is restricted to shareholders holding a particular class of shares Eg if the company needs to discuss the rights of preference shareholders

Answer 33

Resolutions passed at meetings will only be valid if the correct notice of the meeting and the resolution has been given Shareholders can decide whether to attend or appoint a proxy Notice must be in writing (either hard or electronic copy) Notice periods: General meeting or AGM of private company = 14 days AGM of a public company = 21 days Special notice for certain resolutions (eg to remove a director or auditor) = 28 days Shorter notice is allowed if agreed by 90% of the shareholders Shareholders will ave > 5% of the share capitals have the right to circulate a written statement (1000 words before the meeting)

Answer 34

Normally proposed by directors, though shareholders can propose wit enough voting power Notice of every resolution must be given to every shareholder in writing (electronic or hard) Each resolution proposed is voted on separately Types of resolution - ordinary Ordinary resolution - passed by simple majority (CA 2006, s282) Ie greater than 50% votes cast at the meeting Can either be by poll or by show of hands - this ca make a difference to the vote Usually used for uncontroversial proposals Types of resolution - special Special resolution - passed by a majority of more than 75% A copy of every special resolution must be filled at company house Written resolution (Ca2006 s288) Only available for private companies Can be used for all resolutions, ordinary or special, except for removing an auditor before the end of term Model articles state members have 28 days to vote, but this can be altered Newed majority of total voting rights - not just those who voted

Answer 35

Protection of minority shareholders Shareholders with > 25% of voting rights unable to block all resolutions (assuming % required is not altered) Could cause problems if the directors of the company are also majority shareholders, and the minority believe that they have been wronged by the company What can a minority shareholder do? Can start a statutory derivative claim against a director Can apply to a court for an order that the company has been unfairly prejudicial to (some of) its members (CA 2006, s 994) Last resort, could apply to have company wound up

Answer 36

CA 2006, s 260-264 Known as derivative because the shareholder's right to sue is not personal to them but derives from the company’s right to sue Ie it is the company that has been wronged Teh shareholder brings the action on behalf of the company Any compensation awarded will go to the company See Strainer v Lee (2010)

Answer 37

CA 2006, s 260-264 Known as derivative because the shareholder's right to sue is not personal to them but derives from the company’s right to sue I.e. it is the company that has been wronged The shareholder brings the action on behalf of the company Any compensation awarded will go to the company See Strainer v Lee (2010)

Answer 38

CA 2006, s 994 A shareholder may bring a petition to court on grounds of unfair prejudice This is where the shareholder feels that the company Has unfairly prejudiced all the shareholders or A section of shareholders which include them The shareholder has to show that the conduct was unfair and prejudicial The shareholder may be awarded compensation

Answer 39

All companies (unless unlimited) are required to complete a set of accounts annually and submit these to companies house Public companies - 6 months after financial y/r Private companies - 9 months after financial y/e

Answer 40

This depend son the “class” of the company Private companies of a smaller class may be exempt from filing their full accounts at CH and only need to file shorter (or abbreviated accounts) Dormant (ie non-treading) companies only need to submit form to CH confirming status and balance sheet

Answer 41

The balance sheet from your full accounts, along with all notes & signed by a director, needs to be filed at CH These are called the abbreviated accounts The full accounts should be sent to HMRC with the Corporation Tax computation Also, small groups are exempt from preparing consolidated group accounts

Answer 42

The abbreviated accounts that need to be sent to CH will contain a lot more information than a small company But you may omit certain information in the Business Review (e.g. non-financial KPIs) Also, an slightly abbreviated income statement can be prepared.

Answer 43

CA 2006, s 386 Every company must keep adequate accounting records By adequate, it means they are sufficient to show and explain the companies transactions and to disclose the financial position of a company at that time (with reasonable accuracy) S 387 outlines the offences & liabilities for non-compliance

Answer 44

CA 2006, s 388 For private companies, minimum of three years from the date they were made For public companies, this increases to six years

Answer 45

Unless they are exempt (usually for being a small company or a micro-entity) a company will need to have their accounts audited Audit: the examination of the financial report of an organisation n- as presented in the annual report- by someone independent of that organisation

Answer 46

The auditor is an independent contractor appointed to check that the company accounts are accurate and properly prepared, and to report this to the shareholders The accounts will either be prepared in-house or will be prepared by a separate accounting firm

Answer 47

Companies need to appoint an auditor every year Even if company has an exemption, shareholders with more than 10% of the voting rights can demand one Usually, the first auditor is appointed by directors, then by ordinary resolution thereafter The auditors: Has to be a member of a recognised accountancy body (ACCA, ICAEW etc.) Must be independent of the company - can’t be an officer or employee if the company (and cannot be in partnership with such persons)

Answer 48

CA 2006, s 498 A company’s auditor, in preparing his report, must carry out investigations as will enable hi to form an opinion as to: Whether adequate accounting records have been kept by the company Whether the company’s individual accounts are in agreement with the accounting records and returns If the auditor is of the opinion that either of these have not been met, this needs to be stated in the auditor’s report

Answer 49

CA 2006, s 499 An auditor of a company: Has a right of access at all times to the company’s books, accounts and vouchers 9in whatever form they are held) and May require any f the following persons to provide him with such information or explanations as he thinks necessary for the performance of his duties as auditor It is a criminal offence to knowingly or recklessly give an auditor misleading, false or deceptive information

Answer 50

CA 2006, s 495 A company’s auditor must make a report to the company’s members on all annual accounts of the company The report must state clearly whether, in the auditor’s opinion, the annual accounts give a true and fair view: In the case of an individual balance sheet,m of the state of affairs of the company as at the end of the financial year The case of n individual profit and loss account, of the profit or loss of the company for the financial year The report must also state whether the accounts: Have been properly prepared in accordance with the relevant financial reporting framework; and Have been prepared in accordance with the requirements of CA 2006 The report must give whether an unqualified or qualified opinion:

Answer 51

The auditor’s work performed under a contract with the company The authors owes the company and an implied contractual duty of care If the auditor fails to carry out the work with reasonable care and skill, will be liable to the company as a whole for breach of contract The auditors also owe the company a s awhile (not outsiders or individual shareholders) a duty of care in tort of negligence See Caparo Industries v Dickman (1990) It is a criminal offence for an audiotie to knowingly or recklessly causes report to be ,misleading, false or deceptive

Answer 52

Each year, the company can choose not to re-appoint an auditor If they want to remove an auditor before the expiry of their term, they must pass an ordinary resolution at a meeting - special notice required (28 days) Audio haste right to make written representation and to speak at the meeting If the author ceases to hold office (through removal or non-reappointment) they must make a statement of the circumstances Can also state there are no circumstances The statement is sent to all shareholders and CH

Answer 53

The mechanics and processes of how a company is controlled and directed Become an increasing issue over the last 20 years, particularly concerning: Transparency Accountability Internal controls Rights of shareholders

Answer 54

Stakeholders theory Agency theory: When one party (the principle) delegates work to another party (the agent) this can cause problems Eg self interest or access to information Stewardship theory: Alternative view to agency theory Belief that if managers left on their own, will act as responsible stewards of the organisation Agency loss can be reduced by binding manager interests to those of the shareholder seg remuneration, share options

Answer 55

UK corporate governance code *UK CGC) (est 2010m updated 2018, into effect 1dt Jan 2019) Essentially an amalgamation of previous codes/standards (Cadbury report, Higgs Review, Combined Code etc) Not a dually legislative document, but If you area premium listed company (i.e. on the London stock exchange) you have to meet the listing rules in order to keep your listed statues

Answer 56

All companies with a premium sling of equity shares in the UK are required under the listing rules to report in their annual report and accounts how they have applied the code The code is not a rulebook - it sets out good practice As with previous corporate governance standards/codes, it works on a ‘comply or explain’ bases Where a company has explained non-compliance with a provision, investors should judge whether this explanation is satisfactory A good explanation should be seen as being code compliant Where reporting and explanations are weak, it is the responsibility of investors to engage with companies and hold directors to account in order to improve governance practices So you either comply with the code or explain why you are not

Answer 57

board leadership and company purpose Division of responsibilities Composition, succession and evaluation Remuneration

Answer 58

A company being wound up and being liquidated essentially refers to the company ceasing to exist 2 possible ways in which a company is liquidated Voluntary liquidation Compulsory liquidation via a court (insolvency Act (IA) 1986, s124A)

Answer 59

Under IA 1986, a voluntary winding-up of a company may be achieved through an action by the company's members: Special resolution is required A liquidator will be appointed at a general meeting - it is their role t wind up the company and distribute its assets (IA 1986, s 91) Can only take pl;ace if the company is solvent (it can satisfy all of its remaining creditors and have assets left over) A declaration of solvency must be made within a five-week period before the resolution to liquidate is passed If the winding-up takes longer than years the liquidator will; call a general meeting every year

Answer 60

This document states that: The directors have made a full enquiry into the affairs of the company and Have formed the opinion thea the enemy will be able to pay its debts in full within a period of not more than 12 months from the date on which the winding up or liquidation commences A director who makes declaration of solvency without reasonable ground is committing a criminal offence

Answer 61

Appointed to wind up the company and t dispose of its assets in the best interest of the creditors, and to formally remove the company’s registration at companies house Must be a qualified insolvency practitioner Will see to collect any assets owed to the company and to dispose of them of reliance capital Proceeds are distributed to the creditors If all debts settled, remaining proceeds distributed to company member

Answer 62

Liquidation through a court can be made by any of the following petitioning the court (IA 1986, s 124) The company, the dfirectors or any creditor A contributory eg holder of a floating charge A liquidator or temporary administrator The secretary of state were a picnic comma has been issued with its trading certificate The official receiver, where voluntary winding-up is no longer possible When faced with th petition, the court has the option to make the winding-up order, or it may refuse The court may also appoint a provisional liquidator (who may/ may not be the official receiver) where it is likely that the directors may attempt to remove assets of the company

Answer 63

IA 1986, s 122 The company has by special resolution resolved that the company be wound up by the court The public company has not been issued with a trading certificate and has been registered for power a year It is an old public company Cons. Prov act The company does not commence its business within a year from incorporation , pr suspends it business for a whole year The number of members is reduced below 2 (except for Ltd) The company is unable to pay its debts The court is of the opinion that it is just and equitable that the company should be wound up

Answer 64

When the court orders the company to be wound up, the company's liquidation is effective from the date of the petition Until another liquidator is appointed, the official receiver assumes this position Noise of the order must be sent to the register (CH), who publishes this in the London Gazette

Answer 65

When appointed, their role is to identify the state of the company’s affairs with regarded to its assets, debts and other liabilities Under IA 1986, s 131, the receiver has to be supplied with: Particulars of the company’s assets, debts and liabilities Names and addresses of the company’s creditors The securities held by the creditors (& dates given) Any further relevant information This information should be provided by: Officers of the company Employees of the company (if they are capable of providing information) Those who have been either or the above within the year Info needs to be provided within 21 days of notice

Answer 66

The order that the proceeds of company assets is paid out is the same regardless of whether the company is in compulsory or voluntary liquidation Secured creditors with fixed charges The asset on which the charge relates to is sold, and the creditor receives the money owed for the charge After payment, i the company has money left over, this goes into the general asset pool If the proceeds do not satisfy the amount owed, the creditor becomes an unsecured creditor of the outstanding amount eg if the asset has depreciated Costs of winding up This includes the liquidator’s fees As insolvency practitioners are very specialist, they can be costly Preferential creditors These include employees (up to limit £800, occupational pension schemes, HMRC for outstanding tax liabilities) Secured creditors with floating charges The assets of the floating charge crystallises Creditors are paid from those assets But if floating charge made after 15th Sep 2003, a percentage of the assets is put aise for unsecured creditors (depends on the value of the company assets) Unsecured creditors Any creditors that aren’t preferential or have a charge over the company's assets Could include: Suppliers Customers (pre orders, gift vouchers etc) Shareholders that are owed an amount For example if a dividend was dec;ared but yet to be paid Any surplus money Will be distributed to the shareholders DIstribution will b e according to the rights set out in the articles

Answer 67

If one of the groups can’t be paid in full, all the creditors will receive an equal percentage of their outstanding debt Eg 20p in the pound All groups below them will get nothing

Answer 68

Administration - an attempt to rescue the company from liquidation Introduction by the Insolvency Act 1986 (IA 1986) Acts as a method to possibly save a financially unsuccessful company (or LLP) from going into liquidation Once a company is in administration, this prevents any legal action against the company from proceeding The company, the court or a floating charge holder appoints an administrator LLP is limited liability so it’s liquidation would be huge for external shareholders There can be no legal action taken to liquidate the company, this includes shareholders or any external force (creditors) This is step one of saving the company

Answer 69

The administrator must be a qualified insolvency practitioner When they are appointed, they need to inform Companies House and all of the company’s creditors A notice of their appointment will be published in the London Gazette The administrator’s primary objective is to prevent the company from being liquidated This will not only protect the workforce and those reliant on the company’s business, but will hopefully provide a better result for the creditors than if the company were simply liquidated If this is not possible, they will attempt to pay off as much of the company’s liabilities, using the assets the company has During the administration, all control of the company is handed over to the administrator The company pays for the administrator’s fees 8 weeks after appointment, the administrator must produce a written statement that details the status of the company and explains what they plan to do

Answer 70

The administrator may decide that the best option for the company is to: Sell the business as a “going concern” to another company Negotiate a Company Voluntary Arrangement (CVA) Restructure the business (e.g. disposal of divisions) Sell the assets as part of a creditors’ voluntary liquidation, pay the creditors then close the company Wind down the company if there are no assets to sell

Answer 71

This is where the administrator works out an agreement between the company and its creditors in relation to the company’s outstanding liabilities The administrator will work an arrangement that covers how much the company can potentially pay back, plus a schedule of repayments over time – note that this may not cover the full amount owed This schedule must be realistic and achievable by the company Once the possible CVA is created, the administrator will write to the creditors with the proposal There will then be a meeting for the creditors when the administrator can put the proposal forward At the meeting the creditors will vote on whether to accept the CVA – it must be supported by creditors that are owed at least 75% of the company’s debt (q2)

Answer 72

The CVA mean may that the creditor don’t receive the full amount owed to them e.g. the arrangement may give 70p in the pound It may also mean that they receive the outstanding debt slowly over a prolonged period of time On the other hand, accepting the CVA may save the company as a going concern, giving more of an assurance that they will be paid back rather than if the company was liquidated It can depend on where the creditor falls in the priority of debts (see the end of Lecture 8)

Answer 73

The administration period ends: When the purpose of administration has been achieved e.g. the company was successfully sold or a CVA was agreed with the creditors When the administrator’s contract ends – this happens automatically after one year, but can be extended If the administrator decides that the business cannot continue as a going concern – i.e. the liquidation process formally commences

Answer 74

Covered in IA 1986, s 214 Is a civil rather than a criminal offence Can be settled by paying fines All types of directors may be found liable of wrongful trading, including shadow and de-facto directors Occurs when the directors of a company have continued to trade a company past the point when they: "knew, or ought to have concluded that there was no reasonable prospect of avoiding insolvent liquidation“; and they did not take "every step with a view to minimizing the potential loss to the company’s creditors“

Answer 75

he court can order that they make a contribution to the company’s assets (IA 1986, s 214) Additionally, the court may make a disqualification order under the Company Directors Disqualification Act 1986, s 10 This could disqualify the director(s) from being a company director for up to 15 years

Answer 76

We know that companies have to comply with all relevant UK legislation, which includes: Equality Act Human Rights Act Consumer Rights Act/SOGA Data protection laws (DPA, GDPR etc.)