SQE1 sample questions

Question 86

A private limited company is proposing to allot some ordinary shares to a man for a cash payment. The company only has ordinary shares in issue and has unamended model articles as set out in Schedule 1 to the Companies (Model Articles) Regulations 2008.

Once the allotment has been completed, the man will have 30% of the issued share capital of the company. He is not and will not become a director of the company.

Which of the following benefits will be conferred on the man by the allotment of shares?

A. The power to appoint additional directors.

B. A contractual right to dividends.

C. A right of first refusal if another shareholder wishes to sell his or her shares.

D. The power to stop the company changing its name.

E. Guaranteed repayment in full of all amounts paid up on the shares in the event that the company is wound up.


D - The power to stop the company changing its name.

Candidates who answered correctly: 51%


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