2025 update|LML4806 - Company Law| latest |COMPREHENSIVE MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS | GET IT 100% ACCURATE!!
Requirements for person to qualify as BRP? - answers-- person must not have
any other relationship with company that would lead a reasonable and informed
3rd party to conclude that his integrity, impartiality or objectivity is compromised
by that relationship
- former directors of company = integrity compromised
What kind of insiders are there? - answers-- ITO Financial Markets Act, an insider
who knows he has inside info & who acts indirectly/directly through an agent for
his own account in securities on a regulated market to which inside info relates,
comments an offence (S78)
- Insider who knows info & who deals for any other person, commits an offence
- Person who deals for an insider directly or indirectly through an agent in
securities listed on a regulated market to which the inside info possessed by the
insider relates or which are likely to be affected by it, who knew that such a
person is an insider, commits an offence
- insider who knows he has info commits an offence if he discloses info to another
person and to causes that person to deal in that security (disclose info & deal in
info)
, What is insider trading - answers-- trading of securities
- based on information
- that is not yet made public
- which if obtained as public knowledge
- would have a material effect on the price or value of the security
What happens if BRP have not ended after a period of time? - answers-- S132(3)(1)
- practitioner must prepare a report on progress and update it at the end of each
subsequent month until the end of proceedings
- also deliver report to each affected person & to court if proceedings have been
subject to a court order or companies commission
What happens if BRP has been rejected? - answers-- S153
- BR practitioner will advise meeting that company will apply to court to set aside
the result of the vote on grounds it was inappropriate
- court will set aside if reasonable and just to do so
- court will consider interests represented by the person who voted against the
proposed BR plan
- provision if any, made in proposed plan BR with respect to interests of that
person
TESTED QUESTIONS AND VERIFIED SOLUTIONS | GET IT 100% ACCURATE!!
Requirements for person to qualify as BRP? - answers-- person must not have
any other relationship with company that would lead a reasonable and informed
3rd party to conclude that his integrity, impartiality or objectivity is compromised
by that relationship
- former directors of company = integrity compromised
What kind of insiders are there? - answers-- ITO Financial Markets Act, an insider
who knows he has inside info & who acts indirectly/directly through an agent for
his own account in securities on a regulated market to which inside info relates,
comments an offence (S78)
- Insider who knows info & who deals for any other person, commits an offence
- Person who deals for an insider directly or indirectly through an agent in
securities listed on a regulated market to which the inside info possessed by the
insider relates or which are likely to be affected by it, who knew that such a
person is an insider, commits an offence
- insider who knows he has info commits an offence if he discloses info to another
person and to causes that person to deal in that security (disclose info & deal in
info)
, What is insider trading - answers-- trading of securities
- based on information
- that is not yet made public
- which if obtained as public knowledge
- would have a material effect on the price or value of the security
What happens if BRP have not ended after a period of time? - answers-- S132(3)(1)
- practitioner must prepare a report on progress and update it at the end of each
subsequent month until the end of proceedings
- also deliver report to each affected person & to court if proceedings have been
subject to a court order or companies commission
What happens if BRP has been rejected? - answers-- S153
- BR practitioner will advise meeting that company will apply to court to set aside
the result of the vote on grounds it was inappropriate
- court will set aside if reasonable and just to do so
- court will consider interests represented by the person who voted against the
proposed BR plan
- provision if any, made in proposed plan BR with respect to interests of that
person
