ACCA F4 - Corp and Business Law (ENG)

208 13: Company formation  Part D The formation and constitution of business organisations

Quick Quiz

1 A company can confirm a pre-incorporation contract by performing it or obtaining benefits from it.

True

False

2 If a public company does business or borrows before obtaining a trading certificate from the Registrar, the

transaction is:

A Invalid, and the third party cannot recover any loss

B Invalid, but the third party may recover any loss from the directors

C Valid, and the directors are punishable by a fine

D Valid, but the third party can sue the directors for further damages

3 A company must keep a register of directors. What details must be revealed?

Select all that apply.

A Full name

B Service address

C Nationality

D Date of birth

E Business occupation

4 An accountant or solicitor acting in their professional capacity during the registration of a company may

be deemed a promoter.

True

False

5 If a certificate of incorporation is dated 6 March, but is not signed and issued until 8 March, when is the

company deemed to have come into existence?

Answers to Quick Quiz

1 False. The company must make a new contract on similar terms.

2 C. The directors are punished for allowing the company to trade before it is allowed to.

3 All of them.

4 False. A person acting in a professional capacity will not be deemed a promoter.

5 6 March. The date on the certificate is conclusive.

(^) Now try the questions below from the Practice Question Bank
Number
28, 29