Company Law

What does 'piercing the corporate veil' imply?

• To treat rights and liabilities of a corporation as rights and liabilities of its shareholders

• To treat rights and liabilities of parent as rights and liabilities of its subsidiary

• To treat rights and liabilities of corporation as rights and liabilities of its directors

In Petrodel Resources Ltd v Prest [2013], Lord Sumption stated that there is only one instance in which the courts can pierce the veil. What is this one instance?

• Where a subsidiary is acting as an agent for the parent.

• Where a group of companies are to be regarded as a 'single economic unit.'

• Where a person is under an existing legal obligation which he deliberately evades or whose enforcement he frustrates by interposing a company under his control.

• Where a parent owes the employees of its subsidiary a duty of care.

In Chandler v Cape plc [2012], did the Court of Appeal pierce the corporate veil?

• Yes

• No

Which one of the cases listed below does not relate to evasion principle under the principle of 'piercing the corporate veil'

• Jones v Lipman [1962]

• Gilford motor Company Ltd v Horne [1933]

• DHN Food Distributors Ltd v Tower Hamlets LBC [1976]

The process of forming a company including where it becomes a legal entity is known as ______.

• Incorporation

• A franchise

• Liquidity

• Goodwill

What is the minimum paid up capital of public Ltd company?

• 10,000

• 20,000

• 50,000

• 100,000

The minimum number of directors in a public company

• 2

• 3

• 10

• 15

Private limited companies are required to hold AGM.

• True

• False

• Not applicable

How do we call a company that holds shares to merely facilitate the formation of the groups of companies?

• Holding company

• Mother company

• Parent company

• Father company

LLPs are governed by the ...

• LLP Act 1907

• LLP Act 2007

• LLP Act 2000

• LLP Act 1900