SQE1 sample questions

Question 53

A man visits a solicitor. The man informs the solicitor that he is a director of a company (‘the Company’) in which he is also employed. He explains that the Company is wholly owned by a US company (‘the Parent’), and that all the other directors of the Company are officers of the Parent and reside in the USA. The man resides in England.

The man explains that the Parent has requested that the Company purchases a particular property in London (‘the Property’) from which the Company will operate to expand its existing business.

The man further explains that the board of directors of the Company (‘the Board’) has met to consider the Parent’s request and has resolved to proceed with the purchase of the Property as they have determined that such a purchase would promote the success of the Company. The solicitor is asked to advise on the purchase of the Property.

Which of the following statements best explains who is the solicitor’s client?

A. The Parent, because the Company is wholly owned by it

B. The man, because he is the director of the Company who is resident in England.

C. The Company, because it is the Company that will be purchasing the Property.

D. The Parent, because the Parent requested that the Company purchase the Property.

E. The Board, as it has resolved to proceed with the purchase of the Property.