366 Practice question bank
Question 38
Dividends that are paid part of the way through a company's financial year are known by which of the
following names?
A Interim dividends
B Semi-dividends
C Dividends paid in specie.
D Preference dividends (2 marks)Question 39
Reginald owns 100 shares of Linsey Ltd. Each share has a nominal value of £2.50 and Reginald paid £1.00
per share on issue.
Linsey Ltd also issued some debentures which are secured as follows. A fixed charge over a property in
favour of Margaret on 1 May 20X7. It then created a floating charge in favour of Chris over the same
property on 13 May 20X7. The company has Chris's charge registered on 25 May 20X7, and Margaret's
charge on 29 May 20X7.
Required
(a) State the extent of Reginald's liability in the event of Linsey Ltd's liquidation. (2 marks)
(b) Explain the priority of the charges issued to Margaret and Chris. (4 marks)
(Total = 6 marks)Question 40
Which of the following statements correctly describes a Chief Executive Officer's (Managing Director's)
actual authority?
A The authority that the Chief Executive Officer says to others they have
B The authority that the board expressly gives to them
C The authority that usual for a Chief Executive Officer (1 mark)Question 41
Which of the following is a director that has not been validly appointed but is held out by the company to
be a director?
A De facto director
B De jure director
C Alternate director
D Shadow director (2 marks)Question 42
A company secretary is a company officer that MUST be appointed by which of the following companies?
A Public limited company
B Private limited company
C Unlimited liability company (1 mark)