Miscellaneous 3 Flashcards
True or false, tax advisers are not required to monitor their clients’ compliance with the law according to Money Laundering regulations?
True
What is consideration defined as?
Something of value given by one person to create a contract with another
Edward is 75 years old and is making a Will. He does not want to leave his estate outright to his wife Bella, as he is concerned that she will fritter the money away.
His friend Tag told him that he could set up a trust as part of his Will which would allow the income from all of his estate to go to Bella for life, and then on Bella’s death, the estate would pass to their daughter Nessie.
What type of trust would need to be created to ensure that Edward’s wishes were satisfied?
A fixed interest trust
What are directors’ statutory duties?
To act within their powers
To promote the success of the company
True or false, a contract of guarantee must be in writing?
True
True or false, the guarantor in a contract of guarantee has primary liability?
False
True or false, a contract of guarantee must be evidenced in writing?
True
What is the rights of the existing shareholders to be offered new shares by the company known as?
Pre-emption rights
What does perpetual succession mean?
A company’s existence continues despite changes in membership
True or false, preference shares are a less risky investment than ordinary shares?
True
True or false, participating preference shareholders receive dividends at a fixed rate and then participate equally with other shareholders in any further dividend payable?
True
True or false, preference shareholders are entitled to receive a share in a surplus on winding up before ordinary shareholders?
False
For the purposes of capital gains tax, when may share capital be re-organised?
Where share rights are varied
There is a reduction in the company’s share capital
If you refuse to carry out your contractual obligations, what is this known as?
Repudiating the contract
What is substantive law?
The division of law that contains what is commonly understood to be the rules of law
What is the legal definition of theft?
Dishonest appropriation of property belonging to another, with the intention of permanently depriving the other of it
True or false, unpaid wages owed to an employee in respect of 6 months would not be classed as a preferential creditor if a liquidator is appointed?
True
True or false, money owed to a creditor which was borrowed by the company to pay wages would not be classed as a preferential creditor if a liquidator is appointed?
False
You schedule a meeting to reduce the share capital of your company in which a special resolution will be passed. How long before this meeting must the directors’ solvency statement be completed?
15 days
Miss Groves wishes to settle a large house on her nephew, Sebastian. She is concerned that Sebastian, who used to have a gambling problem, may sell the house if he runs into difficulties again. She would like to think that if Sebastian ever has children, the house would still be in the family in case he wished to pass it on to them.
Which two types of trust might be suitable for Miss Groves to set up in this situation?
A flexible life trust
A protective trust
What category of property does a leasehold fall into?
Chattels real
True or false, a proper understanding of the law is not a question of fact?
True
It is essential to identify taxable legal entitles. What types of media may entities be?
Media through which property is held
Media by which certain objectives are achieved
Media through which transactions are conducted
Vehicles adopted for the purposes of investment
What is an injunction?
An equitable remedy to abstain from wrongdoing
