Chapter 17 Self-test questions

Corporate management
There are different types of director of companies and they are often described with reference to their position and their responsibilities to the company. An _________ director is so called due to their activities and because they undertake special responsibilities in the company. These directors take charge over the aspect or function of the company, although there is no legal requirement to have such directors.

Every company must have at least two executive directors who act as the company's managing director and finance director.

The necessary requirement to dismiss a director before the expiry of their term in office involves the moving of which of the following resolutions?

Companies may appoint ______ directors who are defined as 'a person in accordance with whose directions the directors of the company are accustomed to act'.

Companies are required under the Companies Act 2006 to have at least one director in the case of private companies, and two directors in the case of public companies.

The register of directors is a document that may be inspected by which of the following?

Companies are required under the Companies Act 2006 to have at least one director in the case of private companies, and two directors in the case of public companies. At least one of the directors of the company must be a _______ _______.

A director is required to be at least 21 years of age, following enactment of the Companies Act 2006.

Which of the following is NOT a type of company director?

The Companies Act 2006 established that a director must be at least __ years of age, although this does not affect the validity of an appointment that is not to take effect until the person reaches this age.

The directors' duty to promote the success of the company, as identified in the Companies Act 2006, is based on the common law duty of the director acting in good faith.

In relation to Public limited Companies, the minimum number of directors required is?

The directors' duty to promote the success of the company, codified in the Companies Act 2006 s.172 was based on the common law duty of the director acting in ____ ____.

A director is appointed to act in the best interests of the company. This requires them to exercise independent judgement and not necessarily to act in the interests of individual shareholders. This was enshrined in the Companies Act 2006.

The minimum age of a director, as required in the Companies Act 2006, s. 157, is?

The Companies Act 2006 ss.232–239 provide for the ______________ of directors. This assists directors by providing that the company will repay any costs incurred (in certain circumstances) by the director in the course of his/her duties.

A director may be removed from office through an ordinary resolution to that effect. Special notice is to be provided (of 14 days) to the company secretary of the resolution and the meeting at which the resolution is to be passed must be called with at least 7 days' notice.

Which of the following may make a claim of unfair prejudice?

A director may be removed from office through an ordinary resolution to that effect. Special notice is to be provided of __ days to the company secretary of the resolution and the meeting at which the resolution is to be passed must be called with at least 21 days' notice.

Where a director has been persistently in default in providing the required annual returns or accounts to the Registrar, they may be subject to a disqualification order lasting no longer than one year.

If an officer or receiver of a company in liquidation has been guilty of fraud in relation to the company, or has breached their duties as a director, or committed an offence of knowingly being a party to fraudulent trading, the court may issue an order disqualifying the director for a maximum term of?

Where the director has been persistently in default in providing the required annual returns or accounts to the Registrar, they may be subject to a _______________ order lasting no longer than five years.

Generally, the directors of a company and the company secretary owe duties to the company as a whole rather than to the individual shareholders (who make up the company).

The CA 2006 introduced protections for minority shareholders where a shareholder may initiate proceedings against a director on the company's behalf, (a derivative claim). In which of the following circumstances will a court permit a claim to proceed?

The protection of members against _____ ________ is contained in Part 30 of the CA 2006 and provides a right for members to petition a court that the company's affairs are being conducted in a manner that is likely to adversely affect the interests of members generally, or some part of its members (including at least him/herself).

The Companies Act 2006 provides protections for minority shareholders where such a shareholder may initiate proceedings against a director on the company's behalf, (a derivative claim) in respect of a cause of action arising from an actual or proposed act or omission involving negligence, default, breach of duty, or breach of trust by a director of the company.

The Companies Act 2006 made an important change to the previous requirements under the Companies Acts by removing the requirement for private (but not public) companies to have a company _________.

Only members of a company whose rights are being unfairly prejudiced may use the Companies Act 2006 to petition the courts.

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