SQE1 sample questions

Question 80

A trust fund contains a large shareholding in a limited company. One of the trustees of the trust is appointed a director of the company as a result of the trust's ownership of the shares. The trustee receives £10,000 in directors’ fees and a further £3,000 in reimbursement for expenses incurred in carrying out his duties as director. The trust deed is silent on whether the trustee can keep either the fees or the expenses.

Which of the following statements best explains the trustee's position?

A. He can keep both the fees and the expenses.

B. He can keep the expenses but not the fees.

C. He cannot keep either the fees or the expenses.

D. He can keep the fees and expenses if permitted to do so by the other directors.

E. He can keep the fees and expenses if permitted to do so by the other trustees.


B - He can keep the expenses but not the fees.


 

Ready to register for the SQE?

Create your personal SQE account and book your assessments.

Register for SQE 

Have you passed the SQE?

Find out what happens after passing the SQE and admission to the roll of solicitors.

Learn more

Ready to register for the SQE?

Create your personal SQE account and book your assessments.

Register for SQE 

Have you passed the SQE?

Find out what happens after passing the SQE and admission to the roll of solicitors.

Learn more about Have you passed the SQE?