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Everything you need to know about sitting the SQE1 and SQE2 assessments.
The assessment specification for both FLK1 and FLK2, including annexes and sample questions.
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The directors of a private limited company plan to sell some land which is owned by the company. The proposed purchaser of the land is known to all the directors, and is the father of one of the directors. The company’s directors are all also shareholders in the company.
The land has recently been independently valued at £70,000 and it is agreed that this will be the sale price.
The company’s most recent set of annual accounts states net profits of £770,000 and net assets of £600,000. The company has adopted the Companies (Model Articles) Regulations 2008 (unamended) as its articles of association.
Does the proposed sale of land require shareholder approval?
A. No, because the transaction falls under the directors’ general authority to manage the company’s business.
B. No, because the transaction involves the sale and purchase of land which is a non-cash asset.
C. No, because the transaction involves the sale and purchase of an asset at its fair market value.
D. Yes, because the transaction involves the sale and purchase of land whose value exceeds 10% of the company’s asset value.
E. Yes, because the company’s directors are all also shareholders in the company.
D - Yes, because the transaction involves the sale and purchase of land whose value exceeds 10% of the company’s asset value.
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Find out what happens after passing the SQE and admission to the roll of solicitors.