374 Practice answer bank
Answer 38
A Dividends paid part of the way through a company's financial year are known as interim dividends.
Dividends paid in specie are paid using a method other than cash.
Syllabus area E3(b)Answer 39
(a) Reginald is liable to pay the unpaid capital on his shares. This is £150 (100 x £1.50).
(b) Margaret's charge would have taken precedence because it was created first and because it is a
fixed charge, had it been registered within the allowed period of 21 days, up to 22 May. However it
was not registered until 29 May, and Chris's charge was legitimately registered in the period
between 22 and 29 May when Margaret's charge was void. The court would probably have allowed
late registration of Margaret's charge but not at the expense of Chris's rights.Answer 40
B A CEO's actual authority is whatever the board gives to them.
Syllabus area F1(c)Answer 41
A A de jure director is expressly appointed. A de facto director is held out by the company to be a
director. A shadow director is neither, they are a person whose instructions the actual directors are
accustomed to follow. An alternate director is appointed by a director of a company to attend and
vote for them at board meetings they are unable to attend.
Syllabus area F1(a)Answer 42
A Only a public limited company must have a company secretary.
Syllabus area F2(a)Answer 43
D A company auditor has the right, at all times, to access the books, accounts and vouchers of the
company.
Syllabus area F2(b)Answer 44
A 14 days' notice is required for a special resolution.
Syllabus area F3(b)Answer 45
D Approving dividends is included in the ordinary business of an AGM.
Syllabus area F3(a)