1. An alternative title is sometimes used to refer to the company’s Articles of Association. Which one of the following is it?
2. Which of the following tests is not used by the courts as test for establishing whether a person is an employee or an independent contractor?
3. Which of the following given words suits the blank?
“A public company may offer to the public for subscription or purchase ………….”
4. The main objective of an award of damages in a case of breach of contract is which of the following?
5. The Chancery Divisions of the High Court hears cases involving which of the following matters?
6. Mika lost her dog. She promises to pay a reward for the return of her lost dog. Sam finds the dog and returns it to Mika. Choose the type of consideration Sam has provided.
7. What is the name given to the process by which the courts can challenge delegated legislation?
8. To what extent is a member of a company limited by guarantee personally liable to contribute towards the company’s debts?
9. Money laundering involves a number of phases in the overall process. Which two of the following are recognized as phases in the money laundering process?
10. Under the Bribery Act 2010 which one of the following is not an offence?
11. To which of the following circumstances does volenti non fit injuria apply?
12. Mia is a director of Atlas Ltd and Subco Ltd that operate in the same industry. Both the companies have recently tendered for the same contract with Zip Ltd. Only one company will be awarded. Which statutory duty of a director is Mia in breach of?
13. Which TWO of the following are correct?
A - The official receiver is out in charge of a company subject to an administration order.
B - A liquidation order may be granted against the company if the company is in administration.
C - If the company cannot be rescued as a going concern, the next objective of administration is to achieve better result for creditors than an immediate liquidation would.
D - To commence administration always requires a court order.
14. Choose the correct statements regarding the terms of Employment Act 2002.
i. An employer receiving a request from an employee for a flexible working agreement, in accordance with the Act, is obliged to offer such an arrangement.
ii. Parents of disabled children under 20 years old have the right to request for a flexible working agreement.
15. if a promoter does make a secret profit, the company might,
i. Obtain damages
ii. Rescind the contract
iii. Recover the profits
16. Which of the following is classed as non- distributable reserve in the context of UK law?
17. Kim claims that Kevin owes him £4000 for a breach of contract. In which court will Kim commence his action against Kevin?
18. Mary and John formed a partnership, Majo company. The partners don’t normally deal with the financing side of the business and Loki who gave a loan to the company is aware of this and suspect he has no authority to get the finance.
Select the correct statement regarding who is liable for this loan?The partnership is liable for Loki who gave the loan
19. Select the correct option
i. Liquidated damages clauses are always void
ii. Penalty clauses are always void
20. What is the remedy for wrongful dismissal?
21. Camy was employed in Carter Ltd for 3 years and was made redundant. Within how many months should Camy go for the employment tribunal from the date she was dismissed?
22. Select the TWO elements of a company’s constitution.
i. Register of members
ii. Company resolutions
iii. Articles of association
iv. Memorandum of association
23. Following an act to the letter results in a manifest absurdity, so which rule I followed?
24. Which of the following parties may appoint an administrator without a court order?
25. Recission is an equitable remedy, and where available, makes the contract voidable. There are a number of conditions attached to the award of recission.
Which of the following is a condition that must be met for an award of recission to be made?
26. Peter was one of the directors at Maggi Ltd who was recently dismissed. Maggi Ltd wishes to pay Peter compensation for loss of office. Who must approve this payment?
27. If a charge is created over property, it must be registered at,
28. Damages awarded put the claimant in the position they would have been had the contract been performed. What interest is being protected here?
29. What is the minimum period of notice that an employee is entitled to after 12 years’ service?
30. Daimler is appointed by a director of Orange Ltd to attend and vote for them at board meetings when they are personally unable to attend?
In the context of company law, which of the following types of directors is Daimler classified as?
31. Which two of the following is not a ground for the court to order a compulsory winding- up against Coco PLC?
32. When a public company wishes to pass a resolution at an annual general meeting to appoint a new director aged 58, how many days’ notice of the meeting should normally be given?
33. In the context of agency law, an agent will not be liable for a contract in which of the following situations?
34. There are several ways in which the authority of an agent may be terminated. Which of the following is not one of those ways?
35. Which one of the following statements about the law of equity is untrue?
36. Select from the following that doesn’t constitute a duty owed by an employee towards his employer under the common law?
37. Which of the following is not an extrinsic aid to interpretation of statute?
38. Which of the following is not a recognised track, with regards to the tracking system in operation in the English legal system?
39. There are a number of important legal differences between companies and partnerships. Which statement is FALSE?
40. Which of the following regarding limited liability partnership is correct?
41. Which of the following is not a valid method that a company may use to reduce its share capital according to the CA 2006?
42. Which TWO of the following duties is a company secretary expected to perform?
A - Hiring and firing directors
B - Reviewing the work of the company auditor
C - Establishing and maintaining the company’s statutory rights
D - Filing accurate returns with the Registrar of Companies
43. Which TWO of the following are advantages of a debenture trust deed?
A - A single trustee of the debenture holders is appointed so the company only has to deal with one person
B - Debentures covered by a debenture trust deed has a higher priority of repayment on liquidation than debentures not covered by a deed
C - The process of selling a debenture covered by a trust deed is substantially faster than the process of selling a debenture not covered by a debenture trust deed
D - The deed creates a charge or charges over the company’s assets which creates security
44. Which of the following parties is not liable on a pre- incorporation contract?
45. Which of the following is correct regarding presumption of intention to create legal relations?
01. Clara, Nala and Tiara formed a partnership 10 years ago, although Clara was a sleeping partner and never had anything to do with running the business. Last year Nala retired from the partnership. Tiara has subsequently entered into two large contracts.
The first one was with a long- standing customer, Hans, who had dealt with the partnership for some five years.
The second contract was with a new customer, Joy. Both believed that Nala was still a partner in the business. Both contracts have gone badly wrong, leaving the partnership owing £50,000 to both Hans and Joy.
Unfortunately, the business assets will only cover the first £50,000 of the debt.
Which of the following states the liability of Clara as a sleeping partner?
Which of the following describes the liabilities of Nala as a retiring partner?
Select the person from whom can Hans claim the outstanding debt.
02. Jack, who is 70 years of age, has just retired from his employment with a pension and a lump sum of payment of £100,000. He’s keen to invest his money but has absolutely no knowledge of business or investment.
He does not wish to take any great risk with his investment but he would like to have a steady flow of income from it.
Lina, one of his friends, has advised Jack that he can invest in the following range of securities,
- Ordinary shares
- Preference share
- Debentures secured by a fixed charge
- Debentures secured by a floating charge
Which of the following states the liability of Clara as a sleeping partner?
In relation to the above forms of investments, which may have a cumulative right to dividends?
Which of the following normally takes part in surplus capital?
04. PEACH PLC AND AMBER PLC
Mary is the director of two listed public companies in which she has substantial shareholdings: Peach PLC and Amber PLC.
The annual reports of Peach PLC and Amber PLC have just been drawn up although not yet disclosed. They show that Peach PLC has made a surprisingly big loss and that Amber PLC has made an equally surprising big profit. On the basis of this information Mary sold her shares in Peach PLC and bought shares in Amber PLC. He also advised her brother, Hans, to buy shares in Amber PLC.
Which of the following TWO statements are correct?
A - Mary cannot be an insider as directors are excluded from the definition.
B - Mary is an insider because he receives the information from his position of a director.
C - The information is not inside information as it will be made public within the next six months.
D - The information is inside information as it relates to particular securities, is specific and has not yet been made public.
Choose the TWO correct statements.
A - Mary is guilty of an offence of insider dealing by buying shares in Amber PLC
B - Mary is not guilty of an offence of insider dealing by selling her shares in Peach PLC
C - Mary is guilty of an offence of insider dealing when she advises her brother to buy shares in Amber PLC
D - Mary is not guilty of an offence of insider dealing when she advises her brother to buy shares in Amber PLC
Which of he following TWO statements are correct?
A - There are no defences to insider dealing.
B - Hans has not committed an offence as he did not receive any specific information from Mary which encouraged him to buy the shares in Amber PLC.
C - Hans has committed an offence as he has indirect interest in Amber PLC.
D - It is a defence if it can be shown that there was no expectation of profit from the dealing.