In which of the following circumstances would a private company wishing to reduce its share capital require the permission of the court?
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1 .Which of the following regarding a limited liability partnership is true?
A Limited partners can take a small part in day to day management without losing their limited liability B All partners in a limited liability partnership can be limited partners C Limited partners may not generally withdraw their capital during the lifetime of the firm
2 .A special resolution of a company must have which of the following percentage of members favour to pass?
A 50% B 55% C 75% D 80%
3 .John was engaged to act as promoter for VVV Ltd. The founders transferred money to him to purchase inventory, which he agreed to do before the company’s incorporation. John spent the money buying used cars and selling them for a profit.Which of the following is correct?
A John breached his statutory duties under the Companies Act 2006 B John breached his fiduciary duties and is liable for the profit he made C John breached his fiduciary duties but the company has no claim against him D John did not breached any duties as the company had not yet been formed
4 .Which of the following statements regarding consideration received for the allotment of new shares is correct?
A It must be cash consideration B It need not be adequate but it must be sufficient C It may be a non-cash asset but cannot be services performed D It must be adequate valuable consideration
5 .Which of the following may seek approval of the court in order to proceed with a reduction in capital?
A All private and public companies B Only private companies C Only public companies D Only listed public companies
7 .Joe desires to be a member of a newly-formed company and contributes cash to it in exchange for shares in the company.What will be the effect of Joe’s contribution on the company’s share capital?
A Increase B Decrease C Not change
8 .Frank, a prominent businessman, has agreed to join the board of HHH Ltd. However, he is busy and admits that he will only be able to attend a limited number of meetings each year. Which of the following would be permitted?
A To appoint an alternate director as his deputy for meetings that he cannot attend B To join the board on condition that he gives advice only and takes no responsibility for decisions of the board C To appoint a shadow director D To appoint a senior colleague as his agent to attend meetings and tak...
9 .Rose has been invited to attend a members’ meeting of a company in which she owns preference shares.What is the name of the type of meeting to which Rose has been invited?
A Annual meeting B Class meeting C General meeting
10 .What type of resolution is needed if a private company wishes to buy back its own shares?
A Extraordinary B Ordinary C Special
