NOTE TO STUDENTS The primary purpose of providing you with the Practice Assessment 1 and Examiners' Report is to give you an idea of the format of the examination, the type of questions set and a brief summary of the type of points you would be expected to cover in any answer. LPC Business Law and Practice PRACTICE ASSESSMENT 1 Examiners' Report BPP LAW SCHOOL :
LPC: BUSINESS LAW AND PRACTICE PRACTICE ASSESSMENT 1 EXAMINERS' REPORT BUSINESS LAW AND PRACTICE - Practice Assessment 1 EXAMINERS' REPORT This examiners' report contains the key observations made by the marking team for this assessment. Please note that there have been changes to the Practice Paper 1 since the version sat by students, in order to reflect the current format and this report has also been modified accordingly. Paper I Paper 1 comprised Sections A and B. Section A consisted of eight multiple- choice questions worth 20 marks in total. Section B consisted of long-form questions worth 30 marks in total. Section A: Multiple-Choice Questions This section consisted of multiple-choice questions relating to: 1. Voting on a resolution to make a loan to a director; 2. The legality test in relation to articles of association; 3. Calculating TTP and payable corporation tax; 4. Security for loans; 5. The effect of a term loan on a balance sheet; 6. Professional conduct in relation to new clients; 7. Shareholders' power to remove directors; 8. Director's duties and procedural requirements. MCQ answers: 1. C (2 marks) 2. B (3 marks) 3. B (3 marks) 4. D (2 marks) 5. D (3 marks) 6. D (2 marks) 7. C (3 marks) 8. A (2 marks) LAW SCHOOL 24/11/2022/ZH 1 -----
LPC: BUSINESS LAW AND PRACTICE PRACTICE ASSESSMENT 1 EXAMINERS' REPORT 1. C is correct Explanation (i) INCORRECT - s.288(3) the only procedures where WRs not allowed are removal of directors or auditors (ii) INCORRECT - 50% is not a majority s282(1) (iii) CORRECT - Simeon is a director and MA 14 applies (iv) CORRECT - no provision of s. 197 or MA 14 prevents a director from voting in GM in respect of his/her shares. (v) CORRECT - need 10% or more of the voting rights. Under the MA (44(2)(d)). Every shareholder fulfils this requirement. 2. B is correct Explanation (ii) This article cannot be inserted into Willow's articles of association as it would not be effective because the threshold for passing the resolution is higher than the threshold specified in CA 2006 (OR) - this article is incompatible with the CA 2006. (ii) This article can be inserted and would be valid - the company can remove the Chairman's casting vote - this is compatible with CA 2006. (iii) The quorum for shareholder's meetings can be set in the company's articles of association - s318(2), this article is compatible with CA 2006. (iv) This article cannot be inserted into Willow's articles of association as it would not be effective because s300 states that any article preventing the