©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
SQE1 FLK1 Exam Study Guide.
Directors duties (business) - Answers✔S171-177: duty to act within powers, duty to promote
success of the company, duty to exercise independant judgement, duty to exercise reasonavle
skill and care, duty to avoid conflicts of interest, futy to not accept benefits from third parties,
duty to declare interest in proposed transactions.
Model articles 3 - general power to run company (general decicion making).
Liquidator challenging transactions (business) - Answers✔1. What type of transaction is it? (Eg
transactions at an undervalue or gifts).
2. When is the onset of insolvency? (Eg the date of the passing of resolution for voluntary
winding up)
3. Need to show the transaction took place within two years (if by connected persons) or 6
months (others).
4. Must show company was insolvent.
Defence to liquidator challenging transaction (business) - Answers✔Defence is to show the
company entered into the transaction in good faith and for the purpose of carrying on its
business, and that there were reasonable grounds for believing it would benefit the company.
Income tax calculation (tax) - Answers✔1. Add up total income
2. Calculate annual payments and deduct from total income
3. Deduct personal allowances to show taxable income (£12,570)
4. Apply income tax rates to taxable income sources: (a) non-savings income, then (b) savings
income, then (c) dividend income
5. Add together tax payable on all sources calculated in step 4
1
ALL RIGHTS RESERVED.
SQE1 FLK1 Exam Study Guide.
Directors duties (business) - Answers✔S171-177: duty to act within powers, duty to promote
success of the company, duty to exercise independant judgement, duty to exercise reasonavle
skill and care, duty to avoid conflicts of interest, futy to not accept benefits from third parties,
duty to declare interest in proposed transactions.
Model articles 3 - general power to run company (general decicion making).
Liquidator challenging transactions (business) - Answers✔1. What type of transaction is it? (Eg
transactions at an undervalue or gifts).
2. When is the onset of insolvency? (Eg the date of the passing of resolution for voluntary
winding up)
3. Need to show the transaction took place within two years (if by connected persons) or 6
months (others).
4. Must show company was insolvent.
Defence to liquidator challenging transaction (business) - Answers✔Defence is to show the
company entered into the transaction in good faith and for the purpose of carrying on its
business, and that there were reasonable grounds for believing it would benefit the company.
Income tax calculation (tax) - Answers✔1. Add up total income
2. Calculate annual payments and deduct from total income
3. Deduct personal allowances to show taxable income (£12,570)
4. Apply income tax rates to taxable income sources: (a) non-savings income, then (b) savings
income, then (c) dividend income
5. Add together tax payable on all sources calculated in step 4
1
