Deck 14: Robbery, Burglary and Other Offences in the Theft Acts

Question 1

What is the rule in Foss v Harbottle (1843) 2 Hare 461 about?

A) the proper claimant for wrongs to the company is the company
B) the proper claimants for wrongs to the company are the directors
C) the proper claimants for wrongs to the company are the shareholders
D) the proper claimants for wrongs to the company are the creditors

Answer 1

A

Question 2

What is meant by unfair prejudice?

A) that the affairs of the company are managed in a way damaging to a director
B) that the affairs of the company are managed in a way damaging to a creditor
C) that the affairs of the company are managed in a way damaging to a shareholder
D) that the directors disregard shareholder directions

Answer 2

C

Question 3

In cases of reflective loss, who is the appropriate claimant?

A) the company
B) the shareholder
C) the director
D) the secretary of state

Answer 3

A

Question 4

What is meant by reflective loss?

A) that loss to the company also damages the directors
B) that loss to the directors also damages the company
C) that loss to the shareholders also damages the company
D) that loss to the company also damages the shareholders as a result

Question 5

Where a shareholder has suffered loss due to actions violating her personal rights, the appropriate cause of action is

A) a personal suit
B) a derivative action
C) winding up the company
D) dismissing the directors

Question 6

Who bears the costs of a derivative action?

A) the shareholder who brings it
B) the company
C) the directors
D) whoever is at fault

Question 7

Which of the following is not a matter to be taken into consideration by the court when considering whether to allow a derivative action?

A) whether the claimant is acting in good faith
B) the importance that a person acting in accordance with s.172 would attach to the claim
C) whether the company has decided to pursue the claim
D) the view of the Crown Prosecution Service

Question 8

The court must refuse permission to continue a derivative action if

A) a person acting in accordance with s.172 would not seek to continue the claim
B) the act or omission in question has been authorised or ratified by the company
C) a or b
D) a and b

Question 9

Who would be the appropriate party to bring a derivative action?

A) a minority shareholder
B) a majority shareholder
C) a director
D) the company

Question 10

Derivative actions cannot be brought against

A) directors
B) connected persons
C) directors and connected persons
D) third parties based on causes of action independent from the directors

Question 11

Where wrong doing directors (in a case involving the sale of land) are also shareholders, which of the following are they not allowed to do?

A) pass an ordinary resolution approving a sale
B) ratify the breach
C) defeat a resolution to sue the directors
D) stop a legal action on the proper claimant principle

Question 12

Where the directors have wronged the company, the decision on whether to litigate transfers to

A) stakeholders
B) shareholders
C) non-executive directors
D) the secretary of state

Question 13

What is a derivative action?

A) where a shareholder sues on behalf of the company
B) where the company sues on behalf of a shareholder
C) where a director sues on behalf of a company
D) where the company sues on behalf of a director

Question 14

Who can petition against unfair prejudice?

A) a shareholder of the company
B) a director
C) a creditor
D) the secretary of state