1
Which document outlines the internal rules of a company?
Articles of Association
Memorandum of Association
Shareholders’ Agreement
Company Resolution
Articles of Association
Which of the following is a key requirement when forming a limited company?
A minimum of three directors
Submission of an annual report
Registration with the Registrar of Companies
A minimum capital of £10000
Registration with the Registrar of Companies
In which document must the company’s name, registered office, and objectives be specified during formation?
Annual Report
Shareholders’ Agreement
Memorandum of Association
Articles of Association
Memorandum of Association
A company limited by shares primarily limits the liability of:
The company’s creditorsThe employees
The company’s shareholders
Who has the authority to issue shares in a company upon its formation?
Shareholders
Company Secretary
Registrar of Companies
Board of Directors
Board of Directors
What is the main purpose of the Memorandum of Association in company formation?
To outline the rules for managing the company
To appoint directors
To distribute profits among members
To define the company’s relationship with the outside world
To define the company’s relationship with the outside world
Who is responsible for ensuring the accuracy of the information provided during the registration of a company?
Company PromotersCompany shareholders
Company Secretary
Board of DirectorsCompany Promoters
In the company’s constitution, which document typically sets out the roles and duties of directors?
Memorandum of Association
Shareholders' Agreement
Articles of Association
Company Resolution
Articles of Association
Who is responsible for amending a company's Articles of Association?
The Shareholders
The Board of Directors
The Company Secretary
The Registrar of Companies
The Shareholders
What is the par value or nominal value of a share?
The maximum market value of a share
The amount of profit generated by the share
The minimum price for which a share can be issued
The dividend paid on the share
The minimum price for which a share can be issued
What happens if a company acts beyond the scope of its objectives as set out in the Memorandum of Association?
The company is automatically dissolved
The act is considered ultra vires and may be invalid
The shareholders are held personally liable
The directors are automatically removed
The act is considered ultra vires and may be invalid
What is the share premium?
The difference between the nominal value and the price at which shares are issued above par value
The dividend paid on the shares
The discount provided to the first shareholders
The amount of unpaid shares
he difference between the nominal value and the price at which shares are issued above par value
What distinguishes preference shares from ordinary shares?
Preference shareholders are paid dividends before ordinary shareholders
Preference shareholders have voting rights in all company matters
Preference shares cannot be traded in the stock market
Preference shareholders cannot receive dividends
Preference shareholders are paid dividends before ordinary shareholders
Bonus shares refer to:
Shares issued to employees as part of their salary
Shares that are sold at a premium
Shares issued to existing shareholders without payment
Shares repurchased by the company
Shares issued to existing shareholders without payment
Redeemable shares allow the company to:
Issue shares at a discount
Repurchase shares at a future date under agreed terms
Avoid paying dividends
Grant shareholders additional voting rights
Repurchase shares at a future date under agreed terms
What are the restrictions on companies paying dividends?
Dividends must be paid only from the excess profits of the company
Dividends must be paid only from the additional capital of the company
Dividends can be used to pay off the company's debts
Dividends must be paid only from the capital of the company
Dividends must be paid only from the excess profits of the company
What are the restrictions on buying back company shares?
Shares can be purchased only from the capital of the company
Shares can be bought only from the additional profits of the company
Redemption of shares is carried out with the consent of the head of the company
Buyback of shares requires court approval
Shares can be bought only from the additional profits of the company
What are the main responsibilities of a company secretary?
Acting as a mediator in resolving disputes between shareholders
Making strategic business decisions
Management of the company's investment portfolio
Ensuring that the company complies with its legal obligations
Ensuring that the company complies with its legal obligations
Please choose the most appropriate definition for “de facto” director.
a director treated by the board, performing the functions of a company director
any validly appointed director
a director expressly appointed by a company
auditor
a director treated by the board, performing the functions of a company director
Under what circumstances can an executive director be suspended from voting?
if an executive director holds special titles
an executive director cannot be prohibited to vote
if an executive director is an employee of a company
if an executive director has additional management responsibilities
if an executive director is an employee of a company