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- April 10, 2024 at 6:54 pm #703810
Well done Daniel – onwards and upwards 🙂
April 9, 2024 at 5:31 pm #703775Jay, I’m so sorry to hear that you didn’t hit the 50%.
Realistically, you’re two questions away from being in the position where you can forget all about this topic and move on to lots of numerate stuff.
What can you do? In two weeks?
Are you able to identify any particular area (and don’t just say ‘Law’) where you were more at sea than in other areas? If so, get out your revision kit and hammer that area.
If not, and it’s a general disliking / lack of full understanding of the issues involved in this subject, then start working every (say) tenth question from within the revision kit. And when you come across an answer to a question where you fail to recognise the rationale behind the printed solution, then post the question to me on the Ask ACCA Tutor forum and ask me why your answer isn’t correct and why is the printed solution the correct answer.
Realistically, there’s no time to ‘start over’ so either target specific areas where you feel weak or go for the greater coverage by attempting every nth question. And do this until you feel that you cannot take any more. And then do more!
Safe in the knowledge that, once passed, this is the last time that you will be asked any of the minutiae that is expected knowledge for the law paper.
Come on Jay! There are many worse students than you that have passed this paper.
You can do it! And post any problems that you encounter to me and I’ll try to resolve them for you.
OK?
March 23, 2024 at 9:02 am #703320That’s good to know, Vikas. Again, many congratulations and all the best for you in the future
March 22, 2024 at 9:05 pm #703314Vikas, that’s astonishing! Well done. Although I seem to have the feeling that I was not quite so instrumental in your success as you suggest! I quote ‘Although I didn’t watch many of your videos on YouTube …’
Linkedin? I don’t subscribe to that. Nor to Facebook. Nor, really, to any social media sites. OpenTuition is the closest I get 🙂
But your appreciation is sufficient for me and I am thrilled to have played some small part in your Law exam performance.
As for the future, I trust (and fully expect) that you will find all the OpenTuition tutors equally helpful and, if you can replicate your Law exam score in your remaining exams, then you should find prospective employers beating down your door to reach you with attractive employment offers.
It’s a GREAT score, well deserved, and a foretaste of what’s to come 🙂
Thank you for your kind words and thank you also for letting me share in your success
Best wishes
March 20, 2024 at 7:01 pm #703227Well done Jenny 🙂
March 18, 2024 at 6:24 pm #703142You’re very welcome and, when you hit a brick wall in your law studies, please feel free to post on this Ask ACCA Tutor forum and I shall get back to you.
OK?
March 15, 2024 at 4:14 pm #703052Hi Kabani
A debenture most certainly CAN be secured. The security would be either by way of a fixed charge or a floating charge. It is, of course, possible to secure a debenture by a ‘fixed and floating charge’
OK?
March 15, 2024 at 5:37 am #703019In your earlier post I have asked you to scroll through the forum and find any one of many examples of this same question.
As an alternative, you could check the two syllabuses and identify the differences for yourself.
There is a substantial element of law that is common to both variants. Briefly, English law looks in more detail at the area of contract whereas Global law considers the law relating to international trade in greater depth.
If you need more, post again.
March 15, 2024 at 5:30 am #703018Good morning Monica
There have been many posts asking this same question – it wouldn’t take you long to scroll through and find the answer. If you can’t, post again and I’ll set it out for you again.
Meanwhile, living in Kenya is not a matter that is covered in previous posts (but similar situations have been)
Your choice of variant really depends on where you see your future. If you have in mind to move to UK after you qualify, and practice as an accountant, then the English variant is the one to choose. If the plans for the future do not involve UK, then probably Global could be your choice.
If you choose Global and then later you find that you want to move to UK and practice as an accountant, then you will need to take and pass the English law paper before you can apply for a practicing certificate.
Does that help you to make your choice?
If not, post again.
March 13, 2024 at 5:08 am #702955Good score, well done
February 27, 2024 at 5:42 am #701246But you have already given him notice of anticipatory breach!
Who breached first?
I imagine that you should consider yourself fortunate that he didn’t sue you immediately you notified your intention.
I believe that the Court would likely look at this and say that you were both well out of the contract
Is that OK?
February 26, 2024 at 7:18 am #701147“Can I buy a single ticket to Manchester, please?”
“Here’s your ticket. That will be £7.20, please”
“Here is £10”
“Thank you, here’s your change”
At the stage of “Here is £10” the passenger could say “WHAT!? No way am I paying £7.20. I would rather walk” and then leave
So the offer of “Here’s your ticket. That will be £7.20” is the offer.
Before that, “Can I buy a single ticket to Manchester?” is either an invitation or an enquiry., more likely an invitation. Both situations result in the booking office employee making the offer.
Does that do it for you?
February 24, 2024 at 8:58 pm #701050No worries – I couldn’t have got back to you sooner because I’ve just finished watching England get beaten (again) by Scotland in their annual rugby match 🙁
February 21, 2024 at 6:53 am #700775Hi Vikas
If I pass on insider information to my parents about the company that I am auditing, telling them that the company is doing unbelievably well, that would be potentially a breach of the insider dealing provisions. But I know that my parents have never ever bought shares in any company so I firmly believe that I genuinely could not expect them to buy shares on this occasion.
If, again, I pass on inside knowledge that the same company is pretty stagnant in terms of growth and progress, I firmly believe that there is unlikely to be any significant movement in the share price. How could I have possibly have predicted the dramatic rise in market price following the announcement of the company results?
I the first case, I didn’t expect them to deal. In the second case I didn’t expect a profit (nor loss) to result.
OK?
February 19, 2024 at 6:54 am #700655Where a member is wanting to propose that a director be removed from office, the 42 day requirement for members’ requests is not applicable. The 28 day notice requirement suffices
OK?
February 18, 2024 at 7:37 pm #700632Your final paragraph doesn’t make sense. Sorry
February 18, 2024 at 7:36 pm #700631Your post could be misleading to anyone reading it, particularly the second paragraph.
When I read it it could be interpreted that any member wishing to propose a resolution needs to give special notice to the company ….
Special notice is required in only 6 specific instances and not, as your post would suggest, whenever a member wishes to propose a resolution.
You ask about ‘ordinary notice’ The notice requirements for resolutions vary according to the class of resolution being proposed. Special resolutions require that the members should be given 14 days notice that the resolution is to be proposed as a special resolution.
Ordinary resolutions concerning ‘ordinary business’ require no notice BUT it is invariably the case that such a resolution will be proposed within the agenda for the general meeting at which the resolution is to be proposed
For ordinary resolutions that are NOT classed as ordinary business, no fewer than 3 days notice must be given but, again, these resolutions will be included within the agenda circulated to the members notifying them that a meeting is being convened
Ordinary resolutions that require special notice have a dual notice requirement. An outsider member (ie not a member of the board of directors) can ask the company to propose a resolution and must make this request (ie give notice) to the company no less that 28 days before the meeting at which this resolution is to be proposed.
These special notice resolutions relate only to directors (2 resolutions) and auditors (4 resolutions). These are all ordinary resolutions ie they require only a simple majority to be passed
When the company receives this request / notice, the company then must give no later than the next business day notice to the affected director or auditor as the case may be. Within the next following 6 days, the company will then send notice of the resolution to the members so they will have been given not less than 21 days notice of the meeting which will hear this ordinary resolution with special notice
OK?
February 17, 2024 at 3:10 pm #700553Hi Vikas
A statement of circumstances is a statement of those issues that have caused the auditor to resign and these are matters that the auditor believes should be brought to the attention of members and or creditors.
A statement of reasonable length is, as the title suggests a statement. And that statement shall be of a reasonable length. OK! Now we’re getting somewhere. The only issue now is ‘how long is reasonable?’
This is an area where English Law excels! Normally, ‘reasonable’ is determined by ‘what ever is reasonable in the circumstances’. Not helpful?
But I believe that, in this context, reasonable length is ‘not exceeding 1,000 words’
Are you OK now?
February 16, 2024 at 3:13 pm #700505The remuneration of a non-executive director varies from company to company. Some may be paid a fixed amount for, say, a year where others may be aid on a pro-rata attendance basis.
No hard and fast rules about that.
Yes, non-executive directors will have a service contract.
Just because a non-executive director is not an employee does not preclude the possibility of a service contract. Imagine a self-employed electrician whose services are widely used by a company. That electrician, not being an employee, will nevertheless have a service contract.
Is that ok?
February 16, 2024 at 9:30 am #700491The first of the limited grounds for a Court to grant a compulsory liquidation order under Section 122 of the Insolvency Act 1986 is where (and I quote) …
122 Circumstances in which company may be wound up by the court.
(1)A company may be wound up by the court if—
(a) the company has by special resolution resolved that the company be
wound up by the courtI believe that that answers you
OK?
February 16, 2024 at 9:22 am #700489Hi Vikas
No, retirement after two years is not a requirement. When a person is appointed as a director, that’s a position wherein the director becomes a member of the Board and is part of the collective responsibility of running the company and safeguarding its assets for the benefit of the company’s members.
But there’s nothing within that act of appointing that dictates the terms under which the director is to operate – for example, there is no determination of salary, pension, bonus, holidays, duties, restrictions nor other relevant terms of employment.
Looking at that (non-exhaustive) list of potential matters to include in a contract of employment (for that is what a director’s service contract is) it would be potentially available for a company to set an extraordinary salary level for an extraordinary period of time, thus locking the company into an outrageous contractual situation with that director.
Thus, any service contract with the director would not normally exceed one year. But two is a possibility. However, anything over two years would require the express consent of the members.
Does that explain it for you?
February 10, 2024 at 7:33 am #700034Well, there you go!
OK?
February 10, 2024 at 7:32 am #700033Consider this statement of financial position:
Share capital 1,000
Share premium 100
Retained earnings 1,200Total shareholders’ funds 2,300
Assets 2,800
Liabilities 500Net assets 2.300
(As per John’s lectures in the early accounting paper, shareholders’ funds = net assets)
Our company wishes to pay a dividend out of profits available for the purpose. In our case, that’s 1,200 (accumulated realised profits less accumulated realised losses)
Dividend of 300
Statement of financial position is now:
Share capital 1,000
Share premium 100
Retained earnings 900Shareholders’ funds 2,000
Assets 2,500
Liabilities 500Net assets 2,000
Even if our company were to make a loss next year, say 700, the statement would then read:
Share capital 1,000
Share premium 100
Retained earnings 200Shareholders’ funds 1,300
Assets 1,800
Liabilities 500Net assets 1,300
Let’s convert the share premium into shares
Share capital 1,100
Share premium nil
Retained earnings 200Shareholders’ funds 1,300
Assets 1,800
Liabilities 500Net assets 1,300
Still ample coverage of the 500 payables. In fact, that share capital figure (together with any undistributable reserves like the share premium account) is collectively referred to as the ‘creditors’ buffer fund’. It’s the amount below which the net assets cannot fall … IN THEORY
Next year, we sustain a loss. 900!
Revised statement is now:
Share capital 1,100
Retained earnings (700)Shareholders’ funds 400
Assets 900
Liabilities 500Net assets 400
Can we now pay a dividend? No, not without breaking the capital maintenance rules. Say we wanted to pay a dividend of 600 to our troubled shareholders (we can’t! But pretend we can)
Share capital 1,100
Retained earnings (1,300)Shareholders’ funds (200)
Assets 300
Liabilities 500Net liabilities (200)
Now what chance do our payables have of getting their balance repaid?
But notice that the share capital figure still stands at 1,100! This was the major element of the creditors’ buffer fund. And yet the payables now have no chance to recover their balance.
So the concept of capital maintenance is all well and good … but you cannot legislate against companies making losses!
Instead of a dividend in that last illustration, say our company makes another devastating loss. Say 600
Now we have:
Share capital 1,100
Retained earnings (1,300)Shareholders’ funds (200)
Assets 300
Liabilities 500
Net liabilities (200)Your posts appear to me to be comparing the payables figure with the share capital amount. That would not be a sensible approach
OK?
February 9, 2024 at 7:12 pm #700013Sorry to crash the AA forum but two matters arise
1) Are you expecting the AA tutor to do your homework, and
2) Surely this is a law question rather than an auditing question
Personal note to the AA tutor – sorry, Kim, to steal your thunder 🙂
February 9, 2024 at 7:08 pm #700012The mere expression ‘net ASSETS’ tells us that there are (in theory, at least) sufficient assets to satisfy creditors’ claims.
Problems arise when liabilities exceed assets and we have a ‘net liabilities’ situation
You say that you are looking forward to an early reply. A reply is, by definition, a response to a question. And yet I see no question in your post ???
Do you have a question now or is my observation sufficient to resolve your doubts?
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