Deck 15: Fraud

Question 1

What is meant by a demerger?

A) the break up of businesses run by a single company
B) the coming together of separate businesses
C) the coming together of separate companies
D) the parting of directors from the company

Answer 1

A

Question 2

Which of the following is not an example of matters for which the court may make an order under section 900 Companies Act 2006?

A) the transfer of a business undertaking
B) the allotting of shares
C) the dissolution of a company without a winding up
D) the dissolution of a company via a winding up

Answer 2

D

Question 3

Which one of the following is not an example of restructuring a financially healthy company?

A) returning capital to shareholders
B) providing returns for directors
C) demerging a company
D) in anticipation of sale

Answer 3

B

Question 4

Where are schemes of arrangement not used?

A) in takeovers of companies
B) in restructuring
C) in corporate rescue activity
D) in setting up new businesses

Question 5

What can a scheme of arrangement be used for?

A) to restructure debt
B) to restructure the rights of shareholders
C) to restructure debt and change the rights of the shareholders
D) any of the above

Question 6

What is meant by scheme of arrangement?

A) a statutory procedure that facilitates changes being made to the rights of creditors without obtaining the unanimous approval of those affected
B) a statutory procedure that facilitates changes being made to the rights of shareholders without obtaining the unanimous approval of those affected
C) a or b
D) the same as a demerger

Question 7

If a shareholder disapproves of the demerger which of the following can he require?

A) that the directors buy his shares
B) that the other shareholders buy him out
C) that the liquidators buys out his shares
D) that the company is wound-up

Question 8

Which of the following is not a special resolution required by the section 110 procedure?

A) a resolution to dismiss the directors
B) a resolution to wind up the company
C) a resolution to appoint a liquidator
D) a resolution to approve a scheme of reconstruction

Question 9

Which of the following are not common commercial reasons behind demergers?

A) a preliminary step before sale
B) internal reconstruction of a corporate group
C) tax advantages
D) disagreements between directors

Question 10

What is a company voluntary arrangement (CVA)?

A) a composition in satisfaction or a company's debts involving all creditors
B) a composition in satisfaction or a company's debts involving all assenting creditors
C) a composition in satisfaction or a company's debts involving all dissenting creditors
D) a commitment to CSR