Deck 12: Sexual Offences

Question 1

What is the meaning of a conflict of interest?

A) when director and shareholder interests diverge
B) when director and company interests diverge
C) when company and shareholder interests diverge
D) when company and creditor interests diverge

Answer 1

B

Question 2

Which of the following statements is incorrect? In order to be valid a loan to a director by the company requires

A) approval in advance
B) approval given by shareholder general resolution
C) the transaction value must be above 10.000 to warrant approval
D) approval cannot be given for expenditure

Answer 2

D

Question 3

If a director sells a flat she owns to the company for 200.000 pounds, this would constitute

A) a substantial property transaction
B) a minor property transaction
C) a breach of duty
D) a criminal offence

Answer 3

A

Question 4

Shareholder approval is needed for all but one of the following issues involving directors

A) substantial property transactions
B) payments for loss of office
C) loans
D) remuneration

Question 5

Under s.177 a director is under a duty to declare

A) an interest in a proposed transaction with the company
B) his level of income
C) any previous directorships
D) his last salary

Question 6

A director has a duty not to accept benefits from third parties

A) on account of him being a director
B) on account of him doing something as a director
C) on account of him not doing something as a director
D) on account of any of the above

Question 7

Which of the following would be considered a conflict of interest?

A) obtaining for personal benefit a corporate opportunity
B) appointing a non-executive director
C) signing a contract on behalf of the company
D) receiving payment for services to the company

Question 8

The ability of the board to provide authorisation for conflicts is automatic for

A) public companies
B) private companies
C) listed companies
D) all companies divided by shares

Question 9

Directors have a duty to

A) avoid conflicts of interest
B) seek conflicts of interest
C) embrace conflicts of interest
D) identify conflicts of interest

Question 10

Which are the principal fiduciary duties of the directors?

A) to avoid conflicts of interest
B) not to accept bribes
C) a & b
D) fiduciary duties have been replaced by the provisions of the Companies Act 2006