1. Which type of dividend is paid by the issue of additional shares?
2. The fundamental principle of Capital maintenance is,
3. Accumulated realised profits less accumulated realised losses will result in which of the following?
4. A dividend cannot be paid through,
5. Which TWO of the following is generally paid by a listed company?
A. Scrip dividends
B. Interim dividends
C. Final dividend
D. Mid-year dividend
6. A company can declare a dividend by passing,
7. Which of the following is NOT an exempt from the dividend payment rules?
8. Select from the below which is only used for bonus issues.
9. What is the name given to dividends that are paid part of the way through a company's financial year?
10. Which TWO of the following correctly describes a solvency statement?
A. It is a declaration by the directors, provided 15 days in advance of the meeting where the special resolution is to be voted on.
B. It is a declaration by the members, provided 14 days in advance of the meeting where the ordinary resolution is to be voted on.
C. A private company need not apply to the court if it supports its special resolution with a solvency statement.
D. The directors can deliver a solvency statement to the registrar without having reasonable grounds for the opinions expressed in it.
11. The profits available for distribution are generally determined from the ______ to be prepared. Which of the following suits the blank?
12. A public company may only make a distribution if its net assets are, at the time, not less than the aggregate of its _________ and undistributable reserves. Which of the following suits the blank?
13. Which TWO of the following statements can related to an unlawful dividend being made?
A. Dividends in P plc is paid out of asset replacement reserves.
B. Dividends in Q plc is paid out of general reserves.
C. Dividends in R plc is paid out of unrealised profits.
D. Dividends in S plc is paid out of share premium.
14. Which of the following is INCORRECT relating to the power to declare dividends?
15. Select the TWO from the following which are NOT consequences of unlawful dividend.
A. If unlawful dividends are made, the directors of the company will be liable to make good loss.
B. If unlawful dividends are paid on relying the accounts which were erroneously prepared, the auditor will not be liable.
C. If unlawful dividends are paid, the shareholders who had reasonable grounds to know it will have to repay.
D. If unlawful dividends are paid, the shareholders who had reasonable grounds to know it will not be required to repay.
16. Which TWO of the following statements concerning liability for the payment of unlawful dividends is incorrect?
A. Members who did know the payment was unlawful are not liable.
B. Directors are not liable if they declare a dividend that they know is paid out of general reserves.
C. Directors face criminal liability if they declare unlawful dividends.
D. Directors who honestly rely on proper accounts when deciding whether to pay a dividend are not liable if it turns out to be unlawful.
17. Which of the following is NOT a distributable profit?
18. Which TWO of the following are undistributable reserves?
A. Asset replacement reserve
B. Retained profits
C. Revaluation reserve
D. Capital redemption reserve
19. What kind of a resolution has to be passed to reduce a private company’s share capital?
20. Under S641 CA06, A company can reduce its capital at any time, for any reason. Which of the following doesn’t include one such reason?