Updated: Jun 02, 2026
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1. Who is entitled to sue under Section 994 of the Companies Act 2006, which empowers the court to grant a remedy in the event of the company's affairs being conducted in a manner "unfairly prejudicial to the interests of members..."?
A) The directors.
B) The holders of at least 10% of the company's issued share capital.
C) The shareholders as a whole.
D) Any member.
2. S Ltd has an issued share capital of 1000 ordinary shares of £1 each. Some of the shareholders would like to change the name of the company. What is the minimum number of votes which must be cast in favor of the resolution to make it effective?
A) 1,000
B) 500
C) 501
D) 750
3. The primary role of internal audit within an organisation is to:
A) carry out assignments to assist in the attainment of more efficient operations
B) assist the external auditor in order to reduce external audit fees
C) serve as the investigative arm of the board
D) serve as an independent, objective assurance and consulting activity that adds value to operations
4. Which of the following is CORRECT in relation to an alteration of a company's articles of association?
(i) A copy of the resolution and the amended articles must be filed with the Registrar of Companies within 15 days of the date of the resolution.
(ii) The articles of association may be amended by an ordinary resolution with special notice.
(iii) An alteration of the articles cannot discriminate between the majority and minority shareholders.
A) (ii) only
B) (i) only
C) (i) and (iii) only
D) (i) and (ii) only
5. As a member of the audit team of a large company, J has discovered that one of his close friends is in a part of the business which is going to be sold off, and his friend is likely to face redundancy. What should he do?
A) Leak the information: that way he can let his friend know, but the information won't be traced back to J
B) Do nothing: professionally, J is bound to respect the confidentiality of the information he has received
C) Tell his friend: he has an obligation to his friendship
D) Resign: J can't carry on working at the company whilst he is personally compromised
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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