FE-1 Company Law

Question 1

Under the Companies Act 2014, what is the most common type of private company in Ireland?

Accepted Answer

A private company limited by shares (LTD)

Answer

A designated activity company (DAC)

Answer

A public limited company (PLC)

Answer

A company limited by guarantee (CLG)

Question 2

What is the concept of separate legal personality in Irish company law?

Accepted Answer

A company is a legal entity distinct from its members, capable of owning property, suing, and being sued in its own name

Answer

A company and its directors are treated as the same person

Answer

A company has no independent legal existence

Answer

Shareholders are personally liable for all company debts

Question 3

Under the Companies Act 2014, what are the duties of a director?

Accepted Answer

To act in good faith in the interests of the company, act honestly and responsibly, exercise due care and skill, and comply with the Act

Answer

Only to maximise profits for shareholders

Answer

To follow all instructions from the majority shareholder

Answer

To attend all board meetings

Question 4

What is the doctrine of 'lifting the corporate veil' in Irish company law?

Accepted Answer

Courts may disregard the separate legal personality of a company to look at the reality behind it in certain exceptional circumstances

Answer

Directors must always disclose their personal assets

Answer

Shareholders can access all company financial records

Answer

The company must make all board minutes public

Question 5

Under the Companies Act 2014, what is the minimum number of directors required for a private company limited by shares (LTD)?

Accepted Answer

One director (plus a separate company secretary, or two directors where one acts as secretary)

Answer

Three directors

Answer

Five directors

Answer

No minimum requirement

Question 6

What remedies are available to minority shareholders under the Companies Act 2014?

Accepted Answer

An application under section 212 for relief from oppressive conduct of the company's affairs

Answer

No remedies are available — minority shareholders must accept majority decisions

Answer

Minority shareholders can only sell their shares

Answer

Minority shareholders can veto any board decision