Chapter 2 Self-test questions

. Which one of the following statements regarding the Companies Act 2006 (CA 2006) is not true?

The CA 2006 is not yet fully in force.

The CA 2006 came into force in November 2006.

The CA 2006 is the largest piece of legislation ever passed by Parliament.

The CA 2006 consists of 47 Parts.

. Which one of the following Acts of Parliament no longer applies to companies?

The Companies Act 1985.

The Companies Act 2006.

The Company Directors Disqualification Act 1986.

The Financial Services Act 1986.

The Financial Services and Markets Act 2000.

The Insolvency Act 1986.

. Regarding subordinate legislation, which one of the following statements is not true?

Most provisions of the Companies Act 2006 were brought into force by the passing of subordinate legislation.

The model articles are found in subordinate legislation.

The Companies Act 2006 cannot be amended by subordinate legislation.

Subordinate legislation can be used to implement EU law.

In certain areas, subordinate legislation provides detailed rules in areas while the Companies Act 2006 provides the basic framework only.

. Which government department is responsible for company law reform?

Department for Business, Energy and Industrial Strategy.

Department for Business, Enterprise and Regulatory Reform.

Department for Business, Innovation and Skills.

Department of Trade and Industry.

. Certain rules are not legislative, but are supported by legislation in some way. Which one of the following is not supported by legislation in any way?

The FCA Handbook.

The City Code on Takeovers and Mergers.

The FRC's Auditing Standards.

The UK Corporate Governance Code.

The UK Stewardship Code.

The Wates Corporate Governance Principles for Large Private Companies.

The FRC's Guidance on Board Effectiveness.

. Regarding the influence of EU law on UK company law, which one of the following statements is not true.

EU law provides EU citizens with the right to establish a company in any EU Member State.

As EU Regulations automatically become part of domestic law, the process of harmonizing company law has been carried out largely via the passing of Regulations.

The EU Commission has proposed that many key pieces of EU company law legislation be merged.

Following the UK's withdrawal from the EU, UK companies will no longer be subject to EU-derived law.

. The European Convention on Human Rights does not apply to companies.

True.

False.

. Which of the following are not current corporate governance codes?

The Cadbury Code

The Combined Code on Corporate Governance

The UK Corporate Governance Code

The UK Stewardship Code

The Wates Corporate Governance Principles for Large Private Companies

. Which of the following statements regarding the UK Corporate Governance Code are inaccurate?

The most recent version of the Code is the 2016 version.

The Code is aimed at public companies.

The Code operates on a comply or explain basis.

Most FTSE 350 companies comply with the Code in full.

. The Wates Corporate Governance Principles for Large Private Companies only apply to private companies.

True.

False.

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