Assessment Exemplar for Higher National Unit全國高等學(xué)校評估示范

PAGE9AssessmentExemplarforHigherNationalUnitDE5H35:CompanyLaw:AnIntroductionPublishedbytheScottishQualificationsAuthority,HanoverHouse,24DouglasStreet,G27NQ,andIronmillsRoad,Dalkeith,MidlothianTheinformationinthispublicationmaybereproducedtosupportSQAqualifications.Ifitisreproduced,SQAshouldbeclearlyacknowledgedasthesource.Ifitistobeusedforanyotherpurpose,thenwrittenpermissionmustbeobtainedfromtheSupportMaterialsDevelopmentOfficeratSQA.Itmustnotbereproducedfortradeorcommercialpurposes.?ScottishQualificationsAuthority2004DE5H35:CompanyLaw:AnIntroduction?ScottishQualificationsAuthority2004ContentsIntroductionHowtoGenerateEvidenceAssessmentExemplarSQAacknowledgesthevaluablecontributionthatScotland’scollegeshavemadetothedevelopmentofHigherNationalqualifications.PAGE26?ScottishQualificationsAuthority2004IntroductionThispackmustbeusedinconjunctionwithacopyoftheUnitspecification,whichdetailsthestandardofperformance,expectedofthecandidate.AcopyoftheUnitspecificationcanbeobtainedfromSQA.ThispacksupplementstheassessmentguidelinesandsupportnotesoftheUnitspecification.Itaimstoprovideanexampleofassessmentthatisvalid,reliableandpracticable.Theassessmenttask(s)detailedinthispackcorrespondtotheassessmentguidelinesoutlinedintheUnitspecification.Whilsttheexampleprovidedisintendedforguidance,itmayalsobeusedasanassessmentinstrument,aslongasthecentreensurestheintegrityandconfidentialityoftheassessmentinthefirstandsubsequentyearsofuseandbetweencentres.Itmaybeusedinavarietyofwaysincluding,forexample:asanassessmentinstrument,inwholeorinparttoexemplifythestandardofperformanceexpectedofcandidatesachievingtheUnit,ieasabenchmarktohelpyoudevelopyourownassessmentfortheUnittohelpyoudevelopvalidandpracticableassessmentsforotherUnitswithinthesubjectareaoftheGroupAwardtowhichitcontributestogiveyounewideasasastaffdevelopmenttoolItisimportantthatyoumakesurethattheassessmentexemplarisusedinacontextappropriatetothedeliveryoftheUnitandtotheGroupAwardofwhichitformsapart.Althoughthecontentofthisexemplarhasbeenpriormoderatedasasuitableinstrumentofassessment,youshouldnotethatusingthisassessmentexemplardoesnotautomaticallyguaranteesuccessfulexternalmoderation.Itisstillyourresponsibilitytomakesurethatalltheappropriateinternalqualityassuranceproceduresaresatisfactorilycompleted.Forexample,avalid,effectiveandapprovedinternalmoderationsystemmustbeinuseatyourcentre.RecommendedReading Beforeusingthismaterialyoumightfinditusefultolookatsomeofourotherpublications,inparticular:GuidetoAssessmentandQualityAssuranceforCollegesofFurtherEducationGuidanceonSpecialAssessmentArrangementsQualityAssurancePrinciples,ElementsandCriteria.DetailsoftheseandotherSQApublicationsareavailableonourwebsite.MostpublicationscanbedownloadedfreeofchargefromourwebsiteatHYPERLINK.uk.ukonthe‘Publications,SalesandDownloads’section.Ifyourequireapublicationtobesenttoyou,pleasecontactourCustomerContactCentreon08452791000quotingtheproductcodeand,whereachargeisapplicable,haveapurchaseordernumberorcreditcarddetailsavailable.DetailsofallHNassessmentexemplarspublishedafterApril2004arelistedonourwebsiteontheHNsubjectspecificpages.Yourcentre’sSQAorHNCo-ordinatorwillhaveaccesstotheseHNassessmentexemplarsonSQA’ssecurewebsite.Pleaseapproachthemforcopies.However,ifyourequireapapercopyyoucanobtainone,price￡20.00,fromSQA’sCustomerContactCentre,ScottishQualificationsAuthority,24DouglasStreet,Glasgow,G27NQ(telephone:08452791000orfax.CoreSkillsTheUnitspecificationwilldetailtheCoreSkillscoveredwithintheUnit.WhereCoreSkillshavebeenembeddedinaUnitspecificationandanAssessorwishestouseanalternativemethodofassessment,she/hemustensurethattheassessmentgeneratestheEvidenceRequirementsspecifiedintheUnitspecification.ItisrecommendedthatthecentreseekpriormoderationforthealternativemethodtoensurethattheCoreSkillisstillcovered.

HowtoGenerateEvidenceIntroductionTheScottishQualificationsAuthority’ssystemofassessmentmeasurestheevidenceofacandidate’sattainmentofknowledge,understandingandskillsagainstdefinedcriteria.Theassessmentprocessmustallowforevidenceofeachcandidate’sperformancetobegeneratedandcollected.ThisevidencemustthenbejudgedagainstthestandardssetoutintheUnitspecification.ToachievetheUnitthecandidatemustsuccessfullymeetthestandardsandtheremustbeevidencetoprovethis.TheUnitspecificationdefinesthecriteriayouneedtousetojudgewhetherornotthecandidatehasmetthestandards.AllUnitshavethefollowing:OutcomesThesetellyouwhatthecandidateactuallyhastodo.Knowledgeand/orSkillsThissectiondetailstheessentialknowledgeandskills,whichthecandidatemustattaininordertoachieveeachOutcome,combinationofOutcomesorfortheUnitasawhole.EvidenceRequirementsEvidenceRequirementscanbewrittenforeachOutcome,foracombinationofOutcomes,orfortheUnitasawhole.ThereisnostandardformatforwritingEvidenceRequirements.Providedthattheystateclearlyandunambiguouslythetype,standardandamountofevidencewhichcandidateshavetoproduceinordertobejudgedcompetent,theEvidenceRequirementscanbewrittenintheformatwhichwillbemosteasilyunderstoodbyusersoftheUnit.Note:Thenationalstandardofachievementexpected,whichwaspreviouslyspecifiedasPerformanceCriteria,isnowstatedintheEvidenceRequirements.Whereitisnotpossibletocoveralltheitemslistedunderknowledgeand/orskillsthroughholisticassessment,samplingcanbeusedasamethodofgainingadditionalevidence.Samplingmayalsosometimesbeanappropriatemethodofassessingveryknowledge-basedUnits.Thistypeofassessmentmustalwaysbecarriedoutinsupervisedconditions.Wheresamplingisused,theEvidenceRequirementsmustclearlystate:thestandardofevidencerequiredforeachknowledgeand/orskillsitemsothatsatisfactoryperformancecanbejudgedwhicheveritemsaresampledonanyoneoccasiontheproportionofknowledgeand/orskillswhichcanbesampledwhetheranyitem(s)mustbeincludedineachassessment,ieifitiscrucialtotheachievementoftheOutcome(s)ortoanembeddedCoreSkillthefactthatadifferentsampleshouldbechosenoneachassessmentoccasiontopreventcandidatesbeingabletoforeseewhattheywillbeaskedtheconditionsofassessment.

AssessmentGuidelinesThissectionshouldgiveguidanceonhowbesttoconducttheassessmenttogeneratetheevidencerequired,egrecommendingtheuseofaparticularassessmentinstrument.ItshouldincludeguidanceonhowtointegratetheassessmentofthewholeOutcomeor,ifappropriate,howtolinkassessmentholisticallywithotherOutcomesintheUnit.LikeEvidenceRequirements,assessmentguidelinescanbewrittenforeachOutcome,acombinationofOutcomes,orfortheUnitasawhole.ItisimportanttorealisethatitisuptotheAssessortojudgewhenandifthecandidatehassatisfactorilymetthestandards.Thisdecisionshouldbebasedonthequalityandcorrectquantityofevidencecollected,setagainstthestandardsintheUnit.Theassessmentinstrumentinthispackshouldnotcreateanyunnecessarybarrierstoachievementforopen/distancelearningdeliveryandtheadditionalsupportneedsofindividualcandidatesshouldbetakenintoaccount.YoumayneedtoadaptitsothatyoucanassesscandidateswithadditionalsupportneedsorcandidateswhoareundertakingtheUnitonanopen/distancelearningbasis.However,whilsttakingintoaccounttheneedsofthecandidateconcerned,themethodsofassessmentyouchoosemuststillbevalid,reliableandpracticable.Yourmarkingscheduleshouldberobust.Ifyouhaveanyquestionsorproblems,orifyouareinanydoubtastowhetherornotthealternativeassessmentyouhavechosenisstillvalid,pleasecontacttheCustomerContactCentreattheScottishQualificationsAuthorityontelephone:08452791000.

AssessmentExemplarAssessmentTasksThetablebelowsummariseshoweachassessmentexemplartaskrelatestocoverageoftheOutcomesdetailedintheUnitspecification.Italsoindicatestheevidence,whichshouldberetainedforexternalmoderation.OutcomeSuggestedtaskSuggestedevidencetoberetained.

1.

2.

3.

4.

EachcandidateshouldwriteareportthatcanbeusedbyCharlesProspecttodeliverhispresentationtoBean&Co.

Thereportwillbeassessedforthedemonstratedknowledgeofthelegalformationofacompany,formsofcorporatebodyandproceduresforcompanyformation.CaseStudy1providesbackgroundinformationforthis.

Candidatesshouldgivewrittenanswerstothethreequestionsoncompanyfinance.

Candidatesshouldgivewrittenanswerstothefourquestionsonthemanagementandadministrationofacompany.

Candidatesshoulddemonstratetheirknowledgeofinsolvencyasafollowuppresentationfortherepotbasedonthecasestudyforoutcome1CaseStudyAwrittenreportthatcanbeusedbyCharlesProspecttogivetherequiredpresentationtotheclientItshouldclearlydescribethepersonalityofacompanyseparatefromitsownersandboardItshouldalsodescribetheprocessbywhichacompanycanbeformedandregisteredThedifferentformsofcorporatebodythatcanbeformedshouldbeclearlydescribedAnswersshouldprovideclearunderstandingofhowacompany’sfinancialarrangementscanbeunderstoodSharesRaisingfinanceRestrictionsandrulesonacompanywhenraisingfinance

AnswersshouldincludetherolesofdirectorsandthecompanysecretaryTheactivitiesassociatedwithcompanymeetingsshouldbeeffectivelycovered,(AGMsandEGMs)Thevarioustypesofresolutionsshouldbedefined

Awrittenreportcoveringinsolvencyshouldprovideanoverviewonvoluntaryandcompulsoryliquidation,administrationItshouldalsodescribetheroleofaliquidator

ConditionsofAssessmentOutcome1Outcome1requiresthatareportof800-1000wordsbewrittenunderopen-bookconditions.(Aroundtwohoursshouldbeallowedbycandidatestowritethereport).Timemaybeallocatedforresearch,atthediscretionoftheCentre.Thereportisbasedonacasestudythatshouldbeshowntothecandidatesinadvance.ToachievethisOutcome,candidatesshouldachieve70%ofavailablemarks.Outcomes2&3EachoftheseOutcomesrequiresthecandidatetoansweranumberofquestions.InOutcome2thereare3questions.ThequestionsaimtoprovideinformationtoexpandthescenariosetinthecasestudyandanswersfromOutcome1.Eachquestioncarriesequalmarks.Answerswillbeextendedresponses.Theassessmentwillbeconductedasasingleclosedbookexaminationwhichshouldtakeapproximately2hourstocomplete.InOutcome3thereare4questions.ThequestionsaimtoprovideinformationtoexpandthescenariosetinthecasestudyandanswertoOutcome1andtheanswerstoOutcome2.Eachquestioncarriesequalmarks.Answerswillbeextendedresponses.Theassessmentwillbeconductedasasingleclosedbookexaminationwhichshouldtakeapproximately2hourstocomplete.Eachanswershouldbecompletedwithaminimumof150wordsandamaximumof200words.Candidatesshouldbeallowedtwohourstocompletethesequestionsunderclosed-bookconditions.Re-assessmentisatthediscretionoftheCentre.ToachievetheseOutcomes,candidatesshouldachieve70%ofavailablemarks.Outcome4Requiresthatareportof800-1000wordsbewrittenunderopenbookconditions(aroundtwohoursshouldbeallowedtowritethereport).ThereportforthisoutcomeisthesecondofthetworeportsrequestedTimemaybeallocatedforresearch,atthediscretionoftheCentre.Reportshouldbecompletedinaminimumof800wordsandmaximumof1000words.ToachievethisOutcome,candidatesshouldachieve70%ofavailablemarks.

AssessmentTask1Outcome(s)Covered1AssessmentTaskInstructionsOutcome1Youarerequiredtodemonstrateyourknowledgeoftheseparatelegalpersonalityofacompany,thevariousformsofcorporatebody,andtheproceduresfortheformationofacompany.Theevidenceshouldbewrittenandgeneratedunderopen-bookconditions.Withreferencetotheinformationinthecasestudy(seenextpage),giveadetailedoverviewofthevarioustypesofcorporatebodythatexist,particularlyfocusingonthedifferencesbetweenprivateandpubliccompanies.Describethecharacteristicsofeach.Yourbossshouldbeabletotelltheclientaboutthecharacterofacompanywithparticularreferencetoitsseparatelegalpersonalityandwhatthismeanstothewaybusinesscanbeconducted.Youshouldalsocoverhowandwherethecompanyisregisteredaswellasgivingacomprehensivereviewofthedocumentationthatisrequiredtohaveitregistered.Thereportshouldbecompletedinaminimumof800wordsandmaximumof1000words.ToachievethisOutcome,candidatesshouldattain70%oftheavailablemarks.

CaseStudyOutcomes1and4Imaginethatyouworkforanaccountancyfirm,(Bean&Co).Anewandpotentiallylargeclienthasapproachedthefirmwithaninterestingrequestforhelp.Theclientconsistsofagroupofmanagerswhowouldliketosetupanewdistributioncompany.Severalofthemhavefundsavailabletoinvestandtheyhavealsoidentifiedothersourcesoffinancefrompeoplewhowouldliketohaveaninterestinthenewcompany.Themanagersinthegroupallhaveexperienceinthedistributionindustrybuttheyhavenofinancialoraccountancyexperience.ItisforthisreasonthattheyhaveapproachedBean&Co;theyarelookingforafirmtoprovidefinancialservicesandsupporttothem.Theirtaskistoidentifyacompanythatwillprovideahighleveloffinancialsupporttotheminadditiontohavingapresenceontheboardofdirectors.Yourboss,(CharlesProspect),hasbeenaskedtogiveapresentationontheservicesthatBean&Cocanoffertothem.Knowingthatyouhavesomelegaltraining,hehasaskedyoutowriteareportontheareasofcompanylawthatdealwithsettingupacompany.Heisinvitingquestionsattheendofhispresentationandbelievesthatsomeofthequestionsmaybedirectedattheoppositeendofthespectrumi.e.whathappenswhenacompanyistobewoundup.Hethereforeasksthatyouprovideadditionalinformation,intheformofasecondbriefreport,toenablehimtoanswersuchquestionsshouldtheneedarise.

AssessmentTask2Outcome(s)Covered2AssessmentTaskInstructionsOutcome2Youarerequiredtodemonstrateyourknowledgeofthecapitalandfinanceofacompany.Timeallowedtwohours.Tobewrittenunderclosedbookcontrolledconditions.Answerthefollowingthreequestions:Explainwhatsharesare,andhowordinarysharesdifferfrompreferenceshares.Youranswershouldalsoincludeinformationonhowandwheretheymaybepurchased.

Explainthevariouswaysthatacompanycantakeoutloanstoraisecapital.PayparticularattentiontoexplaininghowDebenturesandCompanyChargesdiffer.

Youranswershouldclarifywhatthedifferencesbetweensecuredandunsecuredloansare.

Wheremaytherulesthatgovernacompany’sborrowingpowersbefound?Giveanoverviewonthelimitationsthatmaybeplacedontheboards’abilitytoraisecapital.

Eachanswershouldbecompletedwithaminimumof150wordsandamaximumof200words.ToachievethisOutcome,candidatesshouldattain70%oftheavailablemarks.

AssessmentTask3Outcome(s)Covered3AssessmentTaskInstructionsOutcome3Youarerequiredtodemonstrateyourknowledgeofthemanagementandadministrationofacompany.Timeallowedtwohours.Tobewrittenunderclosed-bookcontrolledconditions.Answerthefollowingfourquestions.Provideanoutlineofthedutiesofadirector.Includeinyouranswerdetailsonhowtheyareappointed,howtheirroleasdirectorscanbeterminatedandwhattheirdutiesandpowersentail.

Outlinethequalificationsnecessaryforacompanysecretaryinapubliccompany.Includeinthishowtheyareappointedandwhattheirdutiesare.Howdoesthiscompareforthecompanysecretaryofaprivatecompany?

OutlinethepurposeofAGMsandEGMs.Howoftenaretheyheldandwhatistheirpurpose?

Definethedifferencebetweenamotionandaresolutionduringtheprocedureatacompanymeetingandexplainthedifferencesbetweenordinary,extraordinaryandspecialresolutions.Eachanswershouldbecompletedwithaminimumof100wordsandamaximumof150words.ToachievethisOutcome,candidatesshouldattain70%oftheavailablemarks.

AssessmentTask4Outcome(s)Covered4AssessmentTaskInstructionsOutcome4Youarerequiredtodemonstrateyourknowledgeofthewaysinwhichinsolvencymaybedealtwith.Tobewrittenandgeneratedunderopen-bookconditions.FollowingthepresentationgivenbyyourbossusingyourreportfromOutcome1,theclienthasaskedyourbosstoprovideanswerstohowacompanythatisinsolventmaybedealtwith.Yourbossaskedyoutoproducethisintheinformation(CaseStudy)andspecificallyrequiresyoutodefinewhatconstitutesinsolvencyinacompanyandhowtheywillbedealtwith.PayparticularattentiontoyourexplanationofLiquidation,(voluntaryandcompulsory),andAdministration.Thereportshouldbecompletedinaminimumof800wordsandmaximumof1000words.ToachievethisOutcome,candidatesshouldattain70%oftheavailablemarks.

AssessmentTask1Outcome(s)Covered1SuggestedSolutionandMakinganAssessmentDecisionInsettingupacompanyvariousformalitiesmustbecompliedwith.Aconstitutionshouldbedraftedmadeupof:a) AMemorandumofAssociation Oftencalledtheexternalconstitutionofthecompanyitshouldinclude:companynameif/ornotitisapubliccompanywheretheregisteredofficeistheobjectsofthecompanyastatementoflimitedliabilityauthorisedsharecapitalofcompanyTheremaybeadditionalclauses.b) ArticlesofAssociation MustbesubmittedtotheregistrarofcompanieswiththeMemorandumof Association TheArticlesaresometimesreferredtoastheinternalconstitutionofthecompany. Theycover:holdingofmeetingsappointmentofdirectorsdeclarationofdividendsappointmentofacompanysecretary Articleswhicharecontrarytopublicpolicyareillegalandvoid.Thedocuments (above)mustbedeliveredtotheregistrarofcompanies,togetherwithastatement ofcapitalandadeclarationofcompliance.Acertificateofincorporationwillthen beissuedtothecompany. Theessenceofacompanyisthatitisacompletelyseparatepersoninlaw.(Seethe caseofSALOMONvSALOMON&CoLtd(1897) Acompanycanownheritableproperty(landandbuildings)initsownname.In companiesownershipisgenerallyseparatedfromcontrol,withownersreceivingthe advantageoflimitedliability. Thecompanyneedneverdieassharescanbetransferred. Thereisadistinctiontobemadebetweenpublicandprivatecompanies.Most companiesareprivatebut,generally,largercompaniesarepubliccompanies. Thebasicdistinctionisthatapubliccompanymayoffersharesanddebenturesto thepublicviastockexchange–itisacriminaloffence,unders81ofCompanies Act1985,foraprivatecompanytodoso. Capitalrequirementofapubliccompanyisaminimumsubscribedsharecapitalof ￡50,000ofwhich25%mustbepaidupiealreadyraisedbytheissueofshares.The nameofthecompanyillustrateswhetheritispublicorprivate.Plcindicatespublic limitedcompany.Ltdorlimitedindicatesthatthecompanyisaprivatecompany. Aprivatecompanydoesnotneedtostatewhattypeofcompanyitisinits memorandum. Acompanysecretaryofapubliccompanyneedstohavearelevantqualification(no suchrequirementforsecretaryofprivatecompany).Publiccompaniesmusthaveat leasttwomembersandtwodirectors.Aprivatecompanyneedsonlyonemember andonedirector.

AssessmentTask2Outcome(s)Covered2SuggestedSolutionandMakinganAssessmentDecision1 Theshareistheinterestoftheshareholderinthecompanymeasuredbyasumof money,forthepurposeofliabilityinthefirstplace,andofinterestinthesecond, butalsoconsistingofaseriesofmutualcovenantsenteredintobyallthe shareholders. (s14CompaniesAct1985) Themainfeaturesofashareare:righttodividendsdeclaredonthesharesgenerally,righttovoteatgeneralmeetingsonliquidation,righttoreceiveassetsdependentonclassofsharesobligationtosubscribecapitaltonominalvalueofsharerighttotransfer(inaccordancewitharticlesofassociation) Ordinarysharesaregovernedbyrules(above).Usuallycompanieswillonlyhave thisclassofshare,whichistheequityofthecompany.Preferencesharesgivetheholderentitlementtoapreferentialdividend.Theymayalsogiveotherrightssuchaspreferentialvotingrightsorrepaymentofcapitalinprioritytoothershares,orwindingup.Sharescanbepurchasedthroughabankorstockbroker. Increasingly,peoplebuysharesonline.(Sharesinaprivatecompanycanbebought viacompanysecretary. 2 Acompanycanraisemoney.Onoccasions,themanagingdirectormayhave ability/authoritytoraisemoneyforthecompanybut,moreusually,theboardof directorsauthorisemoneyissues.Acompanycantakealoanandissuesshares. Debentures(sometimeslikenedtoacompanymortgage)canbeissuedtoraiseloan capital.Debenturesandshareshavesimilarities.TheyarebothcollectivelytermedsecuritiesanddealingsontheStockExchangearecarriedoutinthesameway.However,adebentureholderisacreditorofthecompany(shareholderisamember). Acompanycanpurchaseitsowndebenturesandissuethematadiscount. Loanscanbefixed–securityfortheloanfixedtoacompanyasset,orfloating.

3 TheArticlesofAssociationshouldbereferredtowhenresearchingtherules governingacompany’sborrowingpower.Financeraisingissueswillbeanitemfor aCompanyGeneralmeeting. Itisuptolenderstoinvestigate,whetherornotdirectorshavethepowertoborrow. Ifdirectorsareactingoutwiththeirauthoritytheywillbesaidtobeacting‘ultra vires’(ieoutwiththeirpowers).Aloanmadeinthissituationmaynotbe recoverable.

AssessmentTask3Outcome(s)Covered3SuggestedSolutionandMakinganAssessmentDecision1) Incompanylaw,directorsowetheirdutiestotheprovidersofcapital,ieshareholders.ThisisatraditionalviewwithSection309oftheCompaniesAct1985providingthat:Thematterstowhichthedirectorsofacompanyaretohaveregardinthe performanceoftheirfunctionsincludetheinterestsofthecompany’s employeesingeneralaswellastheinterestsofitsmembers.Accordingly,thedutyimposedbythissectiononthedirectorsofacompanyis owedbythemtothecompany(andthecompanyalone)andisenforceablein thesamewayasanyotherfiduciarydutyowedtoacompanybyitsdirectors.Directorshavetwomaintypesofduty:a) Professional–theArticlesofAssociationrequiresthattwodirectorsarenamed. Theyareappointedbythevotingrightsofshareholders.Theycanberemoved fromtheboardofdirectorsbyanordinaryresolutioninageneralmeeting. (Thispowertoshareholdersisusuallysubjecttorestrictionsegweightedvoting provisionandquorumprovisions.)Directorsmayalsoleavethecompanyatthenormalendofacontract,retirement,resignationanddisqualification.b) Fiduciary–theneedfortrustandactinginthebestinterestsofthecompany. 2) CompanySecretariesarethechiefadministrativeofficersofthecompany.A companysecretaryisappointedbythosewhoformthecompanyanddetailsofthe appointmentmustbesubmittedtotheRegistrarofCompanies. Dutiesinclude:preparationandkeepingofminutesofboardandgeneralmeetingsdealingwithsharetransfersandissuingshareanddebenturecertificatespaymentofdividendssendingnoticesofmeetings,copiesofaccountsetcpreparationofannualreturnspreparationofreturnsrequiredbygovernmentandotherofficialbodies

Therearenomandatoryqualificationsforacompanysecretaryinaprivatecompany.Thereisamandatoryrequirementinapubliccompany.Accordingtos286oftheCompaniesAct1985directorsofpubliccompaniesmusttakeallreasonablestepstoensurethatthesecretaryoreachjointsecretaryofthecompanyisapersonwiththerequisiteknowledgeandexperienceandwho:wasacompanysecretarybeforememberofprescribedprofessionalbodyqualifiedinUKasabarristeroradvocatebyvirtueofanotherpositionheldappearstobecapableofdischargingthefunctionsofthesecretary 3) IntheAGMbusinesswouldnormallyincludeelection/retirementofdirectors,presentationofaccounts,declarationofdividends,shareholdersquestions,payandbenefitsfordirectors.TheAGMisheldannually.FailuretohaveanAGMmayleadtolapseofdirectorsappointments. AnEGMcanbecalledbydirectors,membersrequest,twoormoremembersholding10%ofsharecapital,acourt,resigningauditorsorapubliccompanywherethereisseriouslossofcapital.MostcompanieswilltrytoavoidhavinganEGM,thepreferredoptionbeingtoletthebusinesswaituntilthenextAGM. 4) Amotionisanissue.Decisionshavetobemaderegardingamotionand,oncemade,becomearesolution.Extraordinaryresolutionsarepassedbyamajorityofatleast75%ofthosevotingatandEGM.Noticeofintentionmusthavebeengiven14daysbeforemeeting. Aspecialresolutionisonepassedbyamajorityofatleast75%ofthosevotingandpassedatageneralmeetingofwhichnotice,of21days,hasbeengivenspecifyingtheintentiontoproposetheresolution.AnordinaryresolutionisnotdefinedbyanAct.Itissimplyonepassedbyamajorityofthesevoting

AssessmentTask4Outcome(s)Covered4SuggestedSolutionandMakinganAssessmentDecisionTherearetwotypesof‘windingup’.Compulsorywindingup(Section122(1)oftheInsolvencyAct1986setsoutthegroundsofcompulsorywindingup).Theyinclude:companyhasbyspecialresolutionresolvedthatthecomp