1
Which of the following describes the general duty of a promoter?
Reasonable skill and care
Competence and accuracy
Due diligence
Reasonable skill and care
Which of the following parties is NOT liable on a pre-incorporation contract?
The company
The promoter
The third party
The company
The role of which of the following parties is to form a company?
Subscriber
Member
Director
Promoter
Promoter
Which of the following statements concerning pre-incorporation contracts is correct?
Pre-incorporation contracts must be ratified by the company
Pre-incorporation contracts cannot be ratified by the company
Pre-incorporation contracts can be ratified by the company if the third party agrees
Pre-incorporation contracts cannot be ratified by the company
Which of the following criteria must a public company meet before it can trade?
It must obtain a trading certificate from the Registrar of Companies
Its shares must be listed on a stock exchange
It must have appointed an auditor
It must obtain a trading certificate from the Registrar of Companies
Which of the following criteria must a private company meet before it can trade?
It must have obtained a trading certificate from the Registrar of Companies
It must have obtained a certificate of incorporation from the Registrar of Companies
The members must have agreed to set up the company
It must have obtained a certificate of incorporation from the Registrar of Companies
Which TWO of the following correctly describe the requirements for private and public companies to keep accounting records?
Private companies must keep their accounting records for three years
Private companies must keep their accounting records for six years
Public companies must keep their accounting records for six years
Public companies must keep their accounting records for seven years
Private companies must keep their accounting records for three years
Public companies must keep their accounting records for six years
Which of the following company books is a public company NOT legally required to keep?
Register of people with significant control
Register of debentureholders
Register of disclosed interests in shares
Register of debentureholders
Which of the following is true regarding a register of directors?
The register must include shadow directors
The register must be made available for inspection by company members for a fee
The register must include a service address for each director
The register must include a service address for each director
Which of the following statements concerning promoters is correct?
An accountant who acts in a professional capacity in the formation of a company is a promoter
A promoter may not make a profit as a result of their position
A promoter that acts as an agent for others must not put themselves into a position where their own interests clash with that of the company they are forming
A promoter may not own shares in the company that they are forming
A promoter that acts as an agent for others must not put themselves into a position where their own interests clash with that of the company they are forming
Which TWO of the following are methods that a promoter can use to avoid liability on pre-incorporation contracts?
Signing the pre-incorporation contract 'on behalf of the company'
Executing the pre-incorporation contract as a deed
Buying an 'off-the-shelf' company
Novating the contract
Buying an 'off-the-shelf' company
Novating the contract
To register a company, a number of documents must be submitted to the Registrar of Companies. Which of the following is NOT a document that needs to be sent to the Registrar to register a company?
Articles of association
Memorandum of association
Statement of compliance
Statement of proposed officers
Articles of association
A promoter sent the documents needed to register a company to the Registrar of Companies on 1/1/X1. The Registrar received the documents on 4/1/X1. The certificate of incorporation is dated 6/1/X1 and it is received by the promoter on 8/1/X1. On which date was the company incorporated?
1/1/X1
4/1/X1
6/1/X1
8/1/X1
6/1/X1
In which of the following circumstances must a public company re-register as a private company?
If the market value of its shares falls below the nominal value of the shares
If it makes trading losses for three consecutive years
If it fails to pay its corporation tax liability
If its share capital falls below £50,000
If its share capital falls below £50,000
Which of the following roles is NOT performed by the Registrar of Companies?
Issuing each company's Certificate of Incorporation
Registering companies that will be sold 'off-the-shelf'
Filing a copy of each company's Register of Members
Filing copies of each company's special resolutions
Filing a copy of each company's Register of Members