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Section 122 Insolvency Act 1986 specifically provides a distinct ground for applying to have a company wound up on the ground that it is just and equitable to do so.
Which of the following parties may petition to have a company compulsorily wound up under that provision?
A Shareholders of the company
B Creditors of the company
C Debenture holders of the company
D The Secretary of StateANSWER is A
Q.Which of the following cannot petition for the compulsory winding up of a company on the grounds of insolvency under s.122 Insolvency Act 1986?
A The board of directors
B The members of the company
C The company’s creditors
D The Secretary of State
ANSWER is B.
Whats the difference between members and shareholders?
This is something that you are unlikely ever to need in the rest of your life!
However ….
A member is, by statutory definition, a person whose name appears on the company’s register of members
A shareholder is a person that is beneficially interested in the share capital of the company
So far, I imagine, that has not progressed you very far through to answering your question!
How is it possible to have your name on the register and yet not also be beneficially interested?
– by having recently held shares but, 2 days ago, you sold those shares. In that time gap between selling and the register being updated to reflect that sale …
– by acting as the nominee for someone else
– by acting in the capacity of a trustee of a trust where you are not also one of the trust’s beneficiaries
How can you be a shareholder and not a member?
– by jointly owning shares with someone else and only one name has been notified to the company
– by being the owner of bearer shares (there is no register maintained of bearer share holders)
– by having bought shares 2 days ago and the register has not yet been updated
– by being the beneficiary of a trust (no notice of any trust may be entered in the register, by law)
But, as I said at the start of this response, you are most unlikely ever to have the opportunity to impress others that may ask you the question “What’s the difference between a member and a shareholder?”
If you wish to follow this up with me, please post your supplementary question on the Ask ACCA Tutor forum – that way I shall definitely see it and I shall respond
OK?
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