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Hi Mike
In the mock exam, there are two different answers to a similar question asked:
QUESTION 1
Which of the following is not a ground for the Court to grant a compulsory winding-up order of a private company?
CORRECT ANSWER 1
Failure to obtain a trading certificate within twelve months of incorporation.QUESTION 2
Which one of the following is not a ground for the Court to order a compulsory winding-up?
CORRECT ANSWER 2
Carmen plc has failed to pay a disputed debt of £18,500 for a period in excess of seven months
I had selected on similar thought process from the answer to Question 1 above “Alec plc has failed to obtain a trading certificate within twelve months of incorporation”, however this was incorrect.I realise it may have something to do with PRIVATE company in Question 1, but in Question 2 it does not state whether it is PRIVATE or PUBLIC so how can one distinguish the correct context of the question to answer correctly?
Or am I missing something here altogether?Thanks.
Private companies do not need trading certificates so the combination of ‘private company’ and ‘trading certificate’ is a red herring – a distraction
OK?
Hi Mike
Thanks for a quick reply. So if it is a red herring then why are the answers different in the two questions. I.e. one cites the correct answer to be ‘Failure to obtain a trading certificate within twelve months of incorporation.’ and Question 2 states the correct answer as ‘Carmen plc has failed to pay a disputed debt of £18,500 for a period in excess of seven months’ and ‘Failure to obtain a trading certificate within twelve months of incorporation.’ is also an option to this question but it is not the right answer? What is the difference to these two questions giving different answers?Carmen is a public company and needs a trading certificate within 12 months of incorporation
Alec is a private company and needs no trading certificate
Does that clear it up?
Hi Mike. Thanks for your help. Yes indeed water under the bridge. You’ll be pleased to know I have passed the exam.
Mohammed.
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