1. Which of the following is a right entitled by a shareholder of a company?
2. Not a type of company shares?
3. The minimum number of members any company should have?
4. A member can cease to be a member in many circumstances. Which of the following is not one such?
5. Which of the following describes a bonus issue?
6. A company's issued share capital less capital which carries preferential rights is called as?
7. Select the CORRECT statement regarding class rights of preference shares.
8. Which of the following sources of company finance is classed as ‘equity’ but typically carries no voting rights?
9. Choose the statement which is TRUE concerning shares.
10. The statement that gives up to date details in respect of the company's share capital and is applicable only to the shares of the subscribers, is which of the following?
11. The amount which shareholders have actually paid on the shares issued is called?
12. Script or capitalization issue is referred to as which of the following type of shares?
13. Select the true statement/s.
i. If a company fails to pay preference shareholders their dividend, they can bring a court action to compel the company to pay it.
ii. A share premium account can be used for bonus issues of shares or writing off costs for new share issues.
14. Select the TWO correct statements in relation to payment of shares in public companies.
A. Non-cash consideration must be received within five years.
B. Payment for shares can be made in the form of work or services.
C. Non-cash consideration must be independently valued and reported on by the company’s senior accountant.
D. Shares cannot be allotted until at least one-quarter of their nominal value and the whole of any premium have been paid.
15. Which of the following is a disadvantage of preference shares?
16. How is authority to allot shares required to be given to the directors of a public limited company?
17. Which of the following is CORRECT concerning the market value of a company's shares?
18. In limited liability companies, shareholders are liable to which party for any unpaid capital?
19. X Ltd legitimately purchased 20% of its own shares out of cash. As what will the company hold them as?
20. Which TWO of the following statements are INCORRECT regarding preference shares?
A. A company is compelled to pay dividends on preference shares every financial year.
B. Preference shares do not normally entitle the shareholder to vote in company meetings.
C. Preference shareholders usually have a right to have their capital returned in the event of a liquidation ahead of ordinary shareholders.
D. In the event of a liquidation, preference shareholders have the right to share in any surplus assets ahead of the ordinary shareholders.
21. Which of the following will be credited to a share premium account?
i. Writing off any commission paid on the issue of new shares.
ii. Writing off the expenses of the issue of new shares.
iii. Issuing preference shares.
22. A public listed company has just made a new share issue worth 10mn £2 ordinary shares. All the shares were bought by existing shareholders in the company.
Which ONE of the following conclusions can be inferred from this statement?
23. Select the TWO CORRECT statements regarding the power to allot shares.
A. Directors of public private companies with more than one class of share, are freely allowed to allot shares, without authority from the members.
B. Directors of private companies with one class of share do not have the authority to allot shares unless restricted by the articles.
C. Directors of public or private companies with more than one class of share, may not allot shares without authority from the members.
D. Any director who allots shares without authority commits an offence under the Companies Act 2006 and may be fined.
24. Pre-emption rights are granted in which of the following situations?
25. If a company issues new ordinary shares for cash, the general rule is that:
26. A company wishes to raise new funds by issuing new shares to shareholders for an amount in excess of their nominal value. This refers to which of the following?
27. ‘__________ are shares issued on terms that they may be bought back by a company either at a future specific date or at the shareholder's or company's option’. Which of the following suits the blank?