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August 20, 2019 at 3:11 pm #528228james8500
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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 State
ANSWER 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?August 21, 2019 at 6:25 am #528306MikeLittleKeymaster
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- Replies: 22657
This is something that you are unlikely ever to need in the rest of your life!
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
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