SQE Business Law and Practice

Question 1

Under the Companies Act 2006, what is the minimum number of directors required for a private limited company?

Accepted Answer

1

Answer

2

Answer

3

Answer

4

Question 2

Which document governs the internal management of a company under the Companies Act 2006?

Accepted Answer

Articles of Association

Answer

Memorandum of Association

Answer

Shareholders' Agreement

Answer

Certificate of Incorporation

Question 3

What is the legal effect of a company becoming insolvent on a floating charge?

Accepted Answer

The floating charge crystallises and attaches to the assets

Answer

The floating charge is automatically released

Answer

The floating charge converts to a fixed charge prospectively

Answer

The floating charge remains unaffected

Question 4

Under the Partnership Act 1890, what is the default rule regarding sharing of profits and losses among partners?

Accepted Answer

Equally regardless of capital contribution

Answer

In proportion to capital contributed

Answer

In proportion to time spent

Answer

As agreed in the partnership deed only

Question 5

What type of resolution is required to change a company's articles of association?

Accepted Answer

Special resolution (75%)

Answer

Ordinary resolution (50%)

Answer

Written resolution only

Answer

Unanimous consent

Question 6

What is the purpose of a shareholders' agreement compared to a company's articles of association?

Accepted Answer

It is a private contract providing additional rights not in the articles

Answer

It replaces the articles entirely

Answer

It is filed at Companies House

Answer

It binds third parties automatically