C7) Companies: The consequences of incorporation Flashcards
(22 cards)
What does lifting the veil mean?
The separate entity of a business is no longer the case and the individuals of the company are now liable
Does a public company have to be limited? Yes or No
Yes
How much share capital does a PLC need to have as a minimum?
£50,000
Does a PLC need to have a secretary? Yes or No
Yes a plc must have a secretary
How many directors must a Private and public company have as a minimum?
PLC -2
Private - 1
How many months after the year end must a plc file it accounts?
6 Months
What percentage of PLC shares must be paid up on allotment?
25%
What does Ratify Mean?
To ratify means to formally approve or confirm something, making it officially valid or legally binding.
What type of resolution is required to change a companies articles of association? Special or Ordinary Resolution
Special Resolution
What does entrenchment mean ?
Making something firmly established or difficult to change
Is Simone, in her capacity as company member, required to take up the extra 50 shares?
NO, A member is not bound by an alteration made after their becoming a member, that requires them to purchase more shares or to increase their liability in any way.
What is a debenture?
A loan that is based off of credit worthiness and not fixed against assets
Who needs to provide a directors remuneration Report? Private companies or PLC’s
PLC’s
What is a quoted company?
A company where it shares are listed on the stock exchange
Does a company limited by guarantee have share capital? Yes or No
No
Do micro entities have to file a profit and loss? Yes or No
No
Do Micro Entities have to file notes to the accounts with the registrar?
Yes , Advances to directors and financial commitments
When preparing the statement of capital and initial shareholdings do details of the individual classes of share need to be included ? Yes or No
Yes
Can the partnership raise finance by creating a floating charge over its assets or undertaking? Yes or No
No, this is one of the differences between a partnership and a limited company
Can a partner assign their interest in the partnership to another person?
Yes, but they don’t instantly become a partner they just initially receive the benefits from the partnership
Is there a maximum number of partners you can have in a partnership or a minimum if so how many of each?
There is no maximum but there is a minimum of two
