Business Law & Practice - ALL MCQs in course - FREE Anki cards! This is a document in spreadsheet format which contains all of the MCQ questions ever answered in the BLP course. It is helpfully separated by SGS (26 SGSs in total) and is 88 pages. As many of these questions have been reproduced in e...
Which ONE of the following statements is CORRECT in respect of all private companies with unamended Model Articles?;
a. Under the CA 2006 at least two directors must be present for a board meeting to be quorate;
b. Under the CA 2006 at least two qualifying persons must be present for a general meeting to be quorate;
c. Under the Model Articles the quorum required for a board meeting is at least 2 directors; The correct answer is: Under the Model Articles the quorum required for a board meeting is at least 2 directors
d. The Model Articles specify the quorum requirement for a general meeting.;
From where or from whom do the directors of a company with Companies Act 2006 Model Articles ('MA') derive the authority to manage the company day to day? The correct answer is: Article 3 MA.
Which is correct: The articles of association form an agreement which is enforceable only by the company against the members.
b. A company may amend its articles by way of a special resolution.
c. A company may amend its articles by way of an ordinary resolution.
d. Where the meaning of the articles is unclear, the courts will interpret them to give effect to the presumed intent of the parties. The correct answer is: A company may amend its articles by way of a special resolution.
Shareholder A has 30 shares
Shareholder B has 20 shares
Shareholder C has 20 shares
Shareholder D has 20 shares
Shareholder E has 10 shares
What is the minimum number of shareholders needed to vote in favour to change the company's name under s.77(1) Companies Act 2006. The correct answer is: 4.
Which one of the following will cause a special resolution purportedly passed at a general meeting of a company to be invalid? The correct answer is: The meeting being inquorate.
Which is correct: The directors can call a general meeting by giving not less than 14 days notice to the company’s shareholders
b. A provision in a company’s articles extending the minimum statutory notice period for a general meeting will be void
c. There is a straightforward procedure for the shareholders to call a general meeting themselves which is usually followed.
d. A board meeting can be called on reasonable notice The correct answer is: A board meeting can be called on reasonable notice
Which ONE of the following statements is CORRECT?
Select one:
a. A breach of a condition by one contract party gives the other contract party only the right to treat the contract as at an end.
b. A breach of a condition by one contract party gives the other contract party both the right to treat the contract as at an end and to sue for damages.
c. A breach of a warranty by one contract party gives the other contract party only the right to treat the contract as at an end. The correct answer is: A breach of a condition by one contract party gives the other contract party both the right
d. A breach of a warranty by one contract party gives the other contract party both the right to treat the contract as at an end and to sue for damages. to treat the contract as at an end and to sue for damages.
Major decisions regarding the company, such as the power to change the name of the company or to remove a director, will usually be taken by (choose ONE of the
following):
Select one:
a. The partners.
b. Committee of directors.
c. The board of directors.
d. The shareholders. The correct answer is: The shareholders.
Which of the following statements is/are CORRECT?
i) The postal rule applies even where an acceptance of an offer is delayed or lost in the post.
ii) The postal rule only applies to letters of acceptance, not to letters revoking an offer.
Choose ONE of the following options:
Select one:
a. i) only.
b. ii) only.
c. Both i) and ii).
d. Neither i) nor ii). The correct answer is: Both i) and ii).
,For companies which have Companies Act 2006 MA, which ONE of the following statements is CORRECT?
Select one:
a. Appointment of a director may be made by either passing a shareholders’ resolution or a board resolution and appointment by board resolution is not a temporary
appointment.
b. Appointment of a director may be made by either passing a shareholders’ resolution or a board resolution, but appointment by board resolution is a temporary
appointment. Board resolutions are quicker to implement that ordinary resolutions (which require the board to call a General meeting to pass them).
c. The Companies Act 2006 stipulates a procedure for appointment of a director and therefore appointment of directors is not governed by the articles of association. The correct answer is: Appointment of a director may be made by either passing a shareholders’ resolution or a
d. Board resolutions take longer to implement than ordinary resolutions. board resolution and appointment by board resolution is not a temporary appointment.
Which of the following statements concerning the Limitation Act 1980 are CORRECT?
i) An action founded on tort (other than for personal injuries and death) must be brought within 3 years from the date on which the cause of action accrued.ii) An action
founded on tort (other than for personal injuries and death) must be brought within 6 years from the date on which the cause of action accrued.
iii) An action founded on contract must be brought within 3 years from the date on which the cause of action accrued.
iv) An action founded on contract must be brought within 6 years from the date on which the cause of action accrued.
v) The limitation period for action founded on contract runs from the date of the contract.
Select one:
a. i) and iv)
b. ii) and iii)
c. ii) and iv)
d. i) and v) The correct answer is: ii) and iv)
Which of the following most accurately describes the characteristics of executive and non-executive directors?
Select one:
a. Under the Companies Act 2006, a non-executive director is subject to more narrowly defined “general duties” than an executive director.
b. An executive director is a director who has been appointed to executive office and is an employee of the company. A non-executive director is also an officer of the
company, but will not be an employee of the company. The correct answer is: An executive director is a director who has been appointed to executive office and is an
c. An executive director is usually a trained professional such as an accountant or lawyer. employee of the company. A non-executive director is also an officer of the company, but will not be an
d. Both executive and non-executive directors are equally involved in the day-to-day running of a company. employee of the company.
Which of the following is a matter/are matters that directors are NOT required to have regard to when complying with the section 172 of the Companies Act 2006 (ie the
duty to promote the success of the company)?
i) the need to foster relations with suppliers, customers and others;
ii) the likely consequences of any decision in the short term;
iii) the impact of the company’s operations on the community and the environment;
iv) the need to act fairly as between the directors of the company.
Choose ONE of the following:
Select one:
a. (i) and (iv)
b. (iv)
c. (ii) & (iv)
d. (ii) & (iii) The correct answer is: (ii) & (iv)
Which ONE of the following statements is CORRECT?
Select one:
a. A general meeting can be called on short notice only with the unanimous agreement of the members.
b. A general meeting can be called on short notice if agreed by 90% of the members who together hold a majority of the shares in the company.
c. A general meeting can be called on short notice if agreed by a majority of the members.
d. A general meeting can be called on short notice if agreed by a majority of the members who together hold shares with a nominal value of not less than 90% of the
total nominal value of the shares in the company.
e. A general meeting can be called on short notice by the directors. The correct answer is: ii), iii) & iv)
,Which ONE of the following statements is CORRECT?
Select one:
a. The directors can call a general meeting by giving not less than 14 days notice to the company’s shareholders
b. A provision in a company’s articles extending the minimum statutory notice period for a general meeting will be void The correct answer is: A general meeting can be called on short notice if agreed by a majority of the members
c. There is a straightforward procedure for the shareholders to call a general meeting themselves which is usually followed. who together hold shares with a nominal value of not less than 90% of the total nominal value of the shares in
d. A board meeting can be called on reasonable notice the company.
Which of the following is/are not general duties of directors under the Companies Act 2006:
i) Duty to promote the success of the company for the benefit of the directors as a whole.
ii) Duty to exercise reasonable care, skill and diligence.
iii) Duty to act in the interests of the environment, even where to do so might prejudice the company’s interests.
iv) Duty to exercise independent judgment.
Please choose one of the following options:
Select one:
a. i) and iii).
b. iv) only.
c. iii) only.
d. i), iii) and iv). The correct answer is: i) and iii).
Which of the following statements regarding the use of the written resolution procedure is/are CORRECT:
i) Under the CA 2006 all companies can use the written resolution procedure
ii) A majority in number of shareholders who together hold at least 90% of the company’s voting shares must consent to use the written resolution procedure
iii) The effect of using the written resolution procedure is that no board or general meeting is required to take place
iv) The only decision that cannot be passed as a written resolution is a decision to remove a director from office
Choose ONE of the following:
Select one:
a. ii) and iii)
b. None of the above
c. iii) and iv) only
d. All of the above The correct answer is: None of the above
The liability of the partners in a traditional partnership is: Joint and several
What kinds of business need a registered office?
Select one or more:
a. Sole trader
b. Partnership
c. LLP c. LLP
d. Limited company d. Limited company
Who passes an ordinary resolution?
Select one:
a. Directors
b. Shareholders The correct answer is: Shareholders
How many directors does a private company need?
Select one:
a. One
b. Two 1
A private company can raise equity finance by offering to sell its shares to the public. True or false? The correct answer is 'False'.
, Which of the following kinds of business raise finance by creating a floating charge?
Select one or more:
a. Sole trader
b. LLP
c. Limited company
d. Partnership
The correct answers are: LLP, Limited company
What is the threshold required to pass an ordinary resolution?
Select one:
a. More than 50% of members present and voting
b. 75% of members present and voting
c. More than 50% of all members
d. 50% of members present and voting The correct answer is: More than 50% of members present and voting
What does s. 31 Companies Act 2006 say about a company's objects?
Select one:
a. They are restricted to the objects set out in the company's memorandum. The correct answer is: They are unrestricted unless specifically restricted in the company's articles of
b. They are unrestricted unless specifically restricted in the company's articles of association. association.
The role of the board of directors of a company (the "Company") is to:
Select one:
a. exploit the Company's assets for the directors' own benefit
b. make decisions which the shareholders collectively do not have the expertise or authority to make
c. deal with the Company's customers, while the shareholders make important decisions on a day to day basis D: This is correct. For companies which have adopted the Model Articles for private companies, this the directors'
d. run the Company on a day to day basis, using powers set out in the company's articles power to run the Company day to day is found in Article 3.
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