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\author{livjharrison}
\pdfinfo{
  /Title (company-law-cheat-sheet.pdf)
  /Creator (Cheatography)
  /Author (livjharrison)
  /Subject (Company Law Cheat Sheet)
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        \hspace*{-6pt}\includegraphics[width=5.8cm]{/web/www.cheatography.com/public/images/cheatography_logo.pdf}}
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\begin{tabulary}{11cm}{L}
    \vspace{-2pt}\large{\bf{\textcolor{DarkBackground}{\textrm{Company Law Cheat Sheet}}}} \\
    \normalsize{by \textcolor{DarkBackground}{livjharrison} via \textcolor{DarkBackground}{\uline{cheatography.com/192137/cs/39965/}}}
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\noindent
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  \mymulticolumn{2}{p{5.377cm}}{\bf\textcolor{white}{Cheatographer}}  \\
  \vspace{-2pt}livjharrison \\
  \uline{cheatography.com/livjharrison} \\
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  \mymulticolumn{1}{p{5.377cm}}{\bf\textcolor{white}{Cheat Sheet}}  \\
   \vspace{-2pt}Not Yet Published.\\
   Updated 23rd August, 2023.\\
   Page {\thepage} of \pageref{LastPage}.
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  %\includegraphics[width=48px,height=48px]{dave.jpeg}
  Measure your website readability!\\
  www.readability-score.com
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\begin{tabularx}{17.67cm}{x{2.6352 cm} x{4.6116 cm} x{4.6116 cm} x{4.6116 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{4}{x{17.67cm}}{\bf\textcolor{white}{Business Models}}  \tn
% Row 0
\SetRowColor{LightBackground}
Sole \seqsplit{Trader} & Exclusive owner of business\{\{nl\}\}\{\{nl\}\}Not separate legal entity & Can start trading immediately\{\{nl\}\}\{\{nl\}\}No setup costs/formalities\{\{nl\}\}\{\{nl\}\}Can keep all profits\{\{nl\}\}\{\{nl\}\}Full control over decision making\{\{nl\}\}\{\{nl\}\}Complete privacy; no disclosure \seqsplit{requirements} & Unlimited personal liability\{\{nl\}\}\{\{nl\}\}Contracts formed between sole trader and third parties \tn 
% Row Count 19 (+ 19)
% Row 1
\SetRowColor{white}
\seqsplit{Partnership} & 2 or more persons own business and share profits\{\{nl\}\}\{\{nl\}\}Not separate legal entity & Can start trading immediately\{\{nl\}\}\{\{nl\}\}No setup costs/formalities\{\{nl\}\}\{\{nl\}\}Full control over decision making\{\{nl\}\}\{\{nl\}\}Complete privacy; no disclosure \seqsplit{requirements} & Unlimited personal liability\{\{nl\}\}\{\{nl\}\}Contracts formed between partners and third parties\{\{nl\}\}\{\{nl\}\}A \seqsplit{partnership} agreement will be required otherwise the \seqsplit{Partnership} Act 1890 will apply in default \tn 
% Row Count 38 (+ 19)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{2.6352 cm} x{4.6116 cm} x{4.6116 cm} x{4.6116 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{4}{x{17.67cm}}{\bf\textcolor{white}{Business Models (cont)}}  \tn
% Row 2
\SetRowColor{LightBackground}
LLP & 2 or more persons carrying on a business\{\{nl\}\}\{\{nl\}\}Separate legal entity & All partners have limited liability\{\{nl\}\}\{\{nl\}\}Partnership enters contracts with third parties\{\{nl\}\}\{\{nl\}\}Flexible management procedures & Set-up costs and \seqsplit{formalities:} LLP must be registered at CH\{\{nl\}\}\{\{nl\}\}Must file annual accounts\{\{nl\}\}\{\{nl\}\}Disclosure obligations\{\{nl\}\}\{\{nl\}\}A members' agreement will be required otherwise the provisions of the Limited Liability \seqsplit{Partnership} \seqsplit{Regulations} 2001 will apply in default \tn 
% Row Count 26 (+ 26)
% Row 3
\SetRowColor{white}
\seqsplit{Private} \seqsplit{Limited} \seqsplit{Company} & Separate legal entity distinct from its owners & Limited liability: \seqsplit{shareholders} only liable to pay any amount unpaid on their shares\{\{nl\}\}\{\{nl\}\}Min. of 1 person required to \seqsplit{incorporate} a company\{\{nl\}\}\{\{nl\}\}Easier to raise finance & Set-up costs and \seqsplit{formalities:} Company must be registered at CH\{\{nl\}\}\{\{nl\}\}Extensive disclosure obligations\{\{nl\}\}\{\{nl\}\}CA 2006 imposes strict \seqsplit{requirements} on how companies are run \tn 
% Row Count 43 (+ 17)
\hhline{>{\arrayrulecolor{DarkBackground}}----}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Partnerships}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Persons carrying on a business in common with view to profit} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Governed by PA 1980 if no partnership agreement} \tn 
% Row Count 3 (+ 1)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{PA 1980:\{\{nl\}\}Partners will share equally in profits \& losses even where unequal contributions to capital;\{\{nl\}\}Not entitled to salary;\{\{nl\}\}Decisions decided by majority;\{\{nl\}\}Partner cannot be expelled by majority vote} \tn 
% Row Count 8 (+ 5)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{5.0083 cm} x{12.2617 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Limited Partnerships}}  \tn
% Row 0
\SetRowColor{LightBackground}
Limited partners & 'Sleeping partners'\{\{nl\}\}Not involved in management \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
General partners & Run business\{\{nl\}\}Unlimited liability \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Must be at least 1 limited \& 1 general partner} \tn 
% Row Count 5 (+ 1)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Must register at CH but do not need to file accounts} \tn 
% Row Count 7 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
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\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{5.3537 cm} x{11.9163 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Who's Who}}  \tn
% Row 0
\SetRowColor{LightBackground}
\seqsplit{Shareholders} & Owners who invest money\{\{nl\}\}Not involved in management\{\{nl\}\}Voting rights\{\{nl\}\}Control key decisions\{\{nl\}\}Membership begins when name entered into company's register of members\{\{nl\}\}Need not be a human being \tn 
% Row Count 8 (+ 8)
% Row 1
\SetRowColor{white}
Subscribers & 1st shareholders \tn 
% Row Count 9 (+ 1)
% Row 2
\SetRowColor{LightBackground}
Directors & Officers/managers\{\{nl\}\}The Board\{\{nl\}\}Owes duty to company\{\{nl\}\}Agent of company\{\{nl\}\}Every company must have at least 1 director who is natural person\{\{nl\}\}Must be at least 16 years old \tn 
% Row Count 16 (+ 7)
% Row 3
\SetRowColor{white}
PSCs & Shareholders with over 25\% of shares\{\{nl\}\}Details to be provided to CH \tn 
% Row Count 19 (+ 3)
% Row 4
\SetRowColor{LightBackground}
Other \seqsplit{stakeholders} & E.g. employees, creditors \tn 
% Row Count 21 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
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\begin{tabularx}{17.67cm}{x{2.3618 cm} x{7.2541 cm} x{7.2541 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{3}{x{17.67cm}}{\bf\textcolor{white}{Incorporation of a Company}}  \tn
% Row 0
\SetRowColor{LightBackground}
How? & From scratch & Purchase shelf company \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\seqsplit{Requirements} & Memoradum; articles; fee; form IN01 & Change name, articles, registered office, members, directors and secretary details \tn 
% Row Count 7 (+ 5)
% Row 2
\SetRowColor{LightBackground}
\seqsplit{Post-approval} & Certificate of incorporation with name, registered company number and date of incorporation & Already approved as shelf \tn 
% Row Count 13 (+ 6)
% Row 3
\SetRowColor{white}
Legal \seqsplit{Entity} & From date of incorporation & Already legal entity from existing date of incorporation \tn 
% Row Count 17 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}---}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Pre-Incorporation Contracts}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Pre-incorporation contract enforceable as personal contracts against persons purporting to act on company's behalf ('promoters')} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Promoters bear personal liability, unless there was express agreement that signatory would not be personally bound by contract} \tn 
% Row Count 6 (+ 3)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Company cannot ratify contract before it came into existence} \tn 
% Row Count 8 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Company can obtain benefit of contract made on its behalf pre-incorporation by novating it (replacing with new contract)} \tn 
% Row Count 11 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.3899 cm} x{10.8801 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Shares - Terminology}}  \tn
% Row 0
\SetRowColor{LightBackground}
Share & 'bundle of rights' and 'personal property' carrying legal and beneficial interests \tn 
% Row Count 4 (+ 4)
% Row 1
\SetRowColor{white}
Nominal/par value & Mininum subscription price for that share\{\{nl\}\}\{\{nl\}\}Represents a unit of ownership rather than actual value of the share\{\{nl\}\}\{\{nl\}\}Share cannot be allotted/issued at discount to nominal\{\{nl\}\}\{\{nl\}\}May be issued for more than nominal (the excess over nominal = the 'premium')\{\{nl\}\}\{\{nl\}\}Market value of share often higher than nominal value \tn 
% Row Count 18 (+ 14)
% Row 2
\SetRowColor{LightBackground}
Issued share capital & Total amount in value (nominal \& premium) of all shares in issue at any time\{\{nl\}\}Amount of share capital shown in company accounts \tn 
% Row Count 24 (+ 6)
% Row 3
\SetRowColor{white}
Paid-up share capital & Amount paid by shareholders out of the full amount due on their shares \tn 
% Row Count 27 (+ 3)
% Row 4
\SetRowColor{LightBackground}
Called-up share capital & Amount of outstanding value due on shares which has been demanded by the company \tn 
% Row Count 31 (+ 4)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.3899 cm} x{10.8801 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Shares - Terminology (cont)}}  \tn
% Row 5
\SetRowColor{LightBackground}
Share capital & Made up of subscriber shares and further shares issues after incorporation to new/existing shareholders \tn 
% Row Count 5 (+ 5)
% Row 6
\SetRowColor{white}
Allotted Shares & Shares are allotted when person acquires unconditional right to be included in register of members in respect of those shares\{\{nl\}\}\{\{nl\}\}Confers equitable title only; does not entitle any rights attached \tn 
% Row Count 14 (+ 9)
% Row 7
\SetRowColor{LightBackground}
Limited liability & Total nominal value of shares held by shareholder is equal to total amount of shareholder's liability to contribute to assets of company if it becomes insolvent\{\{nl\}\}\{\{nl\}\}If shareholder's shares are fully paid, will not have to contribute any further amount on insolvency \tn 
% Row Count 25 (+ 11)
% Row 8
\SetRowColor{white}
Capital & Funds available to run business of a company \tn 
% Row Count 27 (+ 2)
% Row 9
\SetRowColor{LightBackground}
Share transfer & Person acquires shares by way of transfer from existing shareholder \tn 
% Row Count 30 (+ 3)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.3899 cm} x{10.8801 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Shares - Terminology (cont)}}  \tn
% Row 10
\SetRowColor{LightBackground}
Transmission & Where titles to shares devolved other than by transfer (e.g. death, bankrupcy or marriage \tn 
% Row Count 4 (+ 4)
% Row 11
\SetRowColor{white}
Issued Shares & Shares issued when shareholder has been registered in register of members and title has become complete \tn 
% Row Count 9 (+ 5)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Shareholder Resolutions}}  \tn
% Row 0
\SetRowColor{LightBackground}
Some decisions require shareholder authorisation & E.g. making changes to constitution; approval of certain transactions; formal declaration of dividends \tn 
% Row Count 6 (+ 6)
% Row 1
\SetRowColor{white}
2 types of resolution & Ordinary: more than 50\%\{\{nl\}\}Special: 75\% or more \tn 
% Row Count 9 (+ 3)
% Row 2
\SetRowColor{LightBackground}
Voting by show of hands: & 1 vote per person present at GM \tn 
% Row Count 11 (+ 2)
% Row 3
\SetRowColor{white}
Voting by poll: & 1 vote per share held by that person present at GM \tn 
% Row Count 14 (+ 3)
% Row 4
\SetRowColor{LightBackground}
Voting by written resolution: & Votes counted out of all shareholders entitled to a vote\{\{nl\}\}\{\{nl\}\}Must be sent to all eligible members\{\{nl\}\}\{\{nl\}\}Time limit of 28 days to respond\{\{nl\}\}\{\{nl\}\}Removal of director/auditor cannot be passed by written resolution \tn 
% Row Count 26 (+ 12)
% Row 5
\SetRowColor{white}
The "Duomatic" principle & Informal resolutions agreed by all shareholders outside of formal meeting, whether express/implied, by verbal/conduct, will be valid and binding \tn 
% Row Count 34 (+ 8)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Shareholder Resolutions (cont)}}  \tn
% Row 6
\SetRowColor{LightBackground}
Right to demand a poll & Can be demanded any time before the vote is held\{\{nl\}\}\{\{nl\}\}Can be demanded by: chairman; directors; 2 or more persons with right to vote; person(s) with no less than 10\% of total voting rights \tn 
% Row Count 10 (+ 10)
% Row 7
\SetRowColor{white}
Right to demand a proxy & Every member entitled to appoint another to exercise all/any of their rights to attend, speak and vote at GM in their place \tn 
% Row Count 17 (+ 7)
% Row 8
\SetRowColor{LightBackground}
Quorum & 2 qualifying persons (unless it is single member company) \tn 
% Row Count 20 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Authority}}  \tn
% Row 0
\SetRowColor{LightBackground}
Express actual authority & Authority has actually been conferred on that person by the principle \tn 
% Row Count 4 (+ 4)
% Row 1
\SetRowColor{white}
Implied actual authority & Arises from appointment to specific role or from course of dealing where board have previously agreed or agreed without protest \tn 
% Row Count 11 (+ 7)
% Row 2
\SetRowColor{LightBackground}
Statutory deemed authority & Third parties dealing in good faith entitled to assume directors' powers are free of constitutional limitations\{\{nl\}\}\{\{nl\}\}Threshold to prove bad faith = high (good faith is presumed)\{\{nl\}\}\{\{nl\}\}Protects third parties, not directors\{\{nl\}\}Company can sue director and recover compensation in CEL caused\{\{nl\}\}Director may be disqualified \tn 
% Row Count 28 (+ 17)
% Row 3
\SetRowColor{white}
Ostensible/apparent authority & Authority of agent as it appears to third party\{\{nl\}\}\{\{nl\}\}Representation must have been made by someone with actual authority and third party must have reasonably relied upon this representation \tn 
% Row Count 38 (+ 10)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Authority (cont)}}  \tn
% Row 4
\SetRowColor{LightBackground}
Deemed authority under 'indoor management' rule & Outsiders are entitled to assume company's internal procedures have been complied with\{\{nl\}\}\{\{nl\}\}Of lesser significance now, but still applies when:\{\{nl\}\}i) Third party has not dealt with Board; or\{\{nl\}\}ii) When Q of whether agent was authorised by board applies.\{\{nl\}\}\{\{nl\}\}Does not apply when:\{\{nl\}\}i) Third party has actual notice of the irregularity or is acting in bad faith\{\{nl\}\}ii) Third party is an insider (e.g. director contracting with company) \tn 
% Row Count 23 (+ 23)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Ratification: \newline Company can ratify acts beyond the actual authority of its agents provided act is within authority of the relevant organ of the company \newline Involves passing resolution to approve act and agree company will be bound by it}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Capacity/Authority - Summary}}  \tn
\SetRowColor{LightBackground}
\mymulticolumn{1}{p{17.67cm}}{\vspace{1px}\centerline{\includegraphics[width=5.1cm]{/web/www.cheatography.com/public/uploads/livjharrison_1692690592_Picture10.png}}} \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.1169 cm} x{9.1531 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Company Liability in Tort}}  \tn
% Row 0
\SetRowColor{LightBackground}
Primary Liability & Vicarious Liability \tn 
% Row Count 1 (+ 1)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Company Liability in Crime}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Company may be held liable for corporate manslaughter} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Company commits offence if manner in which its activities are managed/organised by senior management causes death of person and amounts to gross breach of relevant duty of care owed to person} \tn 
% Row Count 6 (+ 4)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{If guilty, company may be liable to pay fine} \tn 
% Row Count 7 (+ 1)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.2534 cm} x{10.0166 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Termination of Director}}  \tn
% Row 0
\SetRowColor{LightBackground}
Resignation & May resign at any time by giving notice\{\{nl\}\}Will normally be effective and doesn't need to be specifically accepted by board \tn 
% Row Count 6 (+ 6)
% Row 1
\SetRowColor{white}
Vacation & Director automatically vacates office where:\{\{nl\}\}- prohibited from being a director;\{\{nl\}\}- bankrupt, subject to a composition order made with creditors; or\{\{nl\}\}- physically or mentally incapable\{\{nl\}\} for more than 3 months \tn 
% Row Count 16 (+ 10)
% Row 2
\SetRowColor{LightBackground}
Removal - ordinary resolution & Removed by ordinary resolution at GM\{\{nl\}\}\{\{nl\}\}28 clear days notice needed before GM can be held\{\{nl\}\}\{\{nl\}\}Director allowed to vote in capacity as shareholder on resolution to remove them\{\{nl\}\}\{\{nl\}\}'Bushell v Faith' clause in articles gives weighed voting rights to directors who are also shareholders to effectively block ordinary resolution to remove them \tn 
% Row Count 32 (+ 16)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.2534 cm} x{10.0166 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Termination of Director (cont)}}  \tn
% Row 3
\SetRowColor{LightBackground}
Removal - \seqsplit{disqualification} & Mandatory: can last between 2 to 15 years\{\{nl\}\}(Director abused privilege of limited liability, by gross negligence or deliberate disregard of creditors' interests)\{\{nl\}\}\{\{nl\}\}Discretionary: can last for up to 10/15 years depending on grounds for disqualification\{\{nl\}\}(Convicted of indictable offence in connection with company management/property; persistent breaches; fraud; post-investigation \tn 
% Row Count 18 (+ 18)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Penalties for Breach of Disqualification}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Criminal offence to act in breach of disqualification order (fine/imprisonment/both) \& personally liable for company debts incurred during breach of disqualification} \tn 
% Row Count 4 (+ 4)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{SoS may apply to court for compensation order against disqualified director where creditors suffered loss due to director's misconduct} \tn 
% Row Count 7 (+ 3)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{SoS may accept disqualification undertaking by any person that for a specified period, that person will not be a director or be involved with \seqsplit{promotion/formation/management} of a company without leave of court} \tn 
% Row Count 12 (+ 5)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Directors' Duties}}  \tn
% Row 0
\SetRowColor{LightBackground}
Duty to act within powers & Must act within company's constitution\{\{nl\}\}\{\{nl\}\}Must exercise powers for proper purposes for which they are conferred \tn 
% Row Count 6 (+ 6)
% Row 1
\SetRowColor{white}
Duty to promote success of company & Must act subjectively in good faith to promote company for benefit of its members, having regard to:\{\{nl\}\}- consequences;\{\{nl\}\}- employee interests;\{\{nl\}\}- need to foster business relationships;\{\{nl\}\}- impact on community/environment;\{\{nl\}\}- reputation for high standards of business conduct;\{\{nl\}\}- need to act fairly\{\{nl\}\}\{\{nl\}\}Can exemplify these in meeting minutes \tn 
% Row Count 25 (+ 19)
% Row 2
\SetRowColor{LightBackground}
Duty to exercise independent judgement & Must make decisions of own accord and not be influenced by others\{\{nl\}\}\{\{nl\}\}Duty not infringed by acting:\{\{nl\}\}- in accordance with agreement entered into by company that restricts future exercise of discretion by directors;\{\{nl\}\}- in a way authorised by company's constitution \tn 
% Row Count 39 (+ 14)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Directors' Duties (cont)}}  \tn
% Row 3
\SetRowColor{LightBackground}
Duty to exercise reasonable care, skill and diligence & Must be exercised according with:\{\{nl\}\}- reasonably diligent person with general knowledge, skill and experience reasonably expected of person carrying out those functions; and\{\{nl\}\} - general knowledge, skill and experience of the relevant director\{\{nl\}\}\{\{nl\}\}Breach of this can claim damages only \tn 
% Row Count 15 (+ 15)
% Row 4
\SetRowColor{white}
Duty to avoid conflicts of interest & Must avoid direct/indirect interests that conflict or may conflict with company's interests\{\{nl\}\}\{\{nl\}\}Applies to exploitation of property, information or opportunity\{\{nl\}\}\{\{nl\}\}Does not apply to conflict in relation to \seqsplit{transaction/arrangement} with company\{\{nl\}\}\{\{nl\}\}Not infringed if situation cannot reasonably be regarded as likely to give rise to conflict, or if matter has been authorised by independent directors\{\{nl\}\}\{\{nl\}\}Resigned director continues to be subject to this duty \tn 
% Row Count 40 (+ 25)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Directors' Duties (cont)}}  \tn
% Row 5
\SetRowColor{LightBackground}
Duty not to accept benefits from third parties & Must not accept benefit conferred by reason of being a director or doing/not doing anything as a director\{\{nl\}\}\{\{nl\}\}Cannot accept bribes or benefit through dividends in another company \tn 
% Row Count 10 (+ 10)
% Row 6
\SetRowColor{white}
Duty to declare interest in proposed transaction & If director directly/indirectly interested in proposed \seqsplit{transaction/arrangement} with company, must declare nature/extent of interest to other directors prior to company contracting\{\{nl\}\}\{\{nl\}\}Disclosure need not be in writing \tn 
% Row Count 22 (+ 12)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Duties are cumulative: director cannot comply with one duty at expense of another}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.0445 cm} x{11.2255 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Piercing the Corporate Veil}}  \tn
% Row 0
\SetRowColor{LightBackground}
Definition & When courts go behind corporate framework and company's separate legal personality to make shareholders liable \tn 
% Row Count 5 (+ 5)
% Row 1
\SetRowColor{white}
Not piercing the veil: & Statutes allow members of company to become liable in certain circumstances but this is not piercing the veil\{\{nl\}\}\{\{nl\}\}The single economic entity argument is not a basis for piercing the veil\{\{nl\}\}\{\{nl\}\}Parent companies may be liable to those dealing with their subsidiaries in tort but this is not piercing the veil \tn 
% Row Count 18 (+ 13)
% Row 2
\SetRowColor{LightBackground}
Piercing the veil: & Where company was set up as a façade/sham\{\{nl\}\}\{\{nl\}\}Concealment principle: doesn't involve piercing the veil. Corporate structure conceals real actors; court looks behind corporate structure to discover real facts\{\{nl\}\}\{\{nl\}\}Evasion principle: court may pierce the veil if a person deliberately attempts to evade an existing legal obligation by interposing a company which he controls \tn 
% Row Count 33 (+ 15)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.0445 cm} x{11.2255 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Piercing the Corporate Veil (cont)}}  \tn
% Row 3
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Even if there has been evasion, the court will try to find another legal remedy at all costs} \tn 
% Row Count 2 (+ 2)
% Row 4
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Extremely rare that piercing the veil will be invoked} \tn 
% Row Count 4 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.0445 cm} x{11.2255 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Remedies for Breach of Directors' Duties}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Shareholders may bring a derivative claim on behalf of company where directors have breached their duties} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Any relief will be granted to company, not shareholder who brought claim} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
Remedial options: & - Account for profits\{\{nl\}\}- Damages\{\{nl\}\}- Rescission\{\{nl\}\}- Injunction (to prevent directors from breachin their duties) \tn 
% Row Count 10 (+ 5)
% Row 3
\SetRowColor{white}
Relief from liability: & - Prior approval by directors\{\{nl\}\}- Prior approval by shareholders\{\{nl\}\}- Ratification\{\{nl\}\}- Relief granted by court (where director has acted honestly, reasonable and ought fairly to be excused) \tn 
% Row Count 18 (+ 8)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{} \tn 
% Row Count 18 (+ 0)
% Row 5
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{} \tn 
% Row Count 18 (+ 0)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.0807 cm} x{10.1893 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Classes of Shares}}  \tn
% Row 0
\SetRowColor{LightBackground}
Ordinary & Most common \& default\{\{nl\}\}\{\{nl\}\}Carry right to vote, receive dividend and share of capital on winding up \tn 
% Row Count 5 (+ 5)
% Row 1
\SetRowColor{white}
Preference & Entitled to have dividends paid at predetermined rate in priority to dividend paid on ordinary shares\{\{nl\}\}\{\{nl\}\}Right to priority over ordinary shareholders when capital returned on winding up\{\{nl\}\}\{\{nl\}\}Don't always have voting rights \tn 
% Row Count 16 (+ 11)
% Row 2
\SetRowColor{LightBackground}
Cumulative preference & Arrears of preference dividends not declared in earlier years + those for current year payable before any dividend paid to ordinary shareholders \tn 
% Row Count 23 (+ 7)
% Row 3
\SetRowColor{white}
Non-cumulative preference & Only current year's right to dividend is payable before any dividend paid to ordinary shareholders \tn 
% Row Count 28 (+ 5)
% Row 4
\SetRowColor{LightBackground}
Participating preference & Receive both fixed preferential dividend or fraction of capital on winding up + fraction of general dividend or capital in accordance with their shareholding \tn 
% Row Count 35 (+ 7)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.0807 cm} x{10.1893 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Classes of Shares (cont)}}  \tn
% Row 5
\SetRowColor{LightBackground}
\seqsplit{Non-participating} preference & Receive only fixed preferential dividend or fraction of capital \tn 
% Row Count 3 (+ 3)
% Row 6
\SetRowColor{white}
Deferred & Only have right to dividend and/or return of capital after claims of preference and ordinary\{\{nl\}\}\{\{nl\}\}Not common \tn 
% Row Count 8 (+ 5)
% Row 7
\SetRowColor{LightBackground}
Redeemable & Temporary shares which may be bought back by company at future date\{\{nl\}\}\{\{nl\}\}Purchased and issues for short-term investments \tn 
% Row Count 14 (+ 6)
% Row 8
\SetRowColor{white}
Non-voting & Issued where company seeks to restrict control of company \tn 
% Row Count 17 (+ 3)
% Row 9
\SetRowColor{LightBackground}
Convertible & May be converted to a different type of share in issuing company according to pre-arranged formula in articles \tn 
% Row Count 22 (+ 5)
% Row 10
\SetRowColor{white}
Employees' & Issued to employees under employee's share scheme which has tax advantages\{\{nl\}\}\{\{nl\}\}Usually issued as ordinary but with restrictions \tn 
% Row Count 28 (+ 6)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Class Rights \& Variations}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Presumption that all shares have equal rights unless express provision in articles says otherwise} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Class rights can only be varied:\{\{nl\}\}- in accordance with relevant provisions in articles; or\{\{nl\}\}- if no provision exists, where 75\% of shares of the affected class consent in writing, or a special resolution is passed at meeting of holder of the affected class} \tn 
% Row Count 8 (+ 6)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Companies may entrench class rights in articles\{\{nl\}\}This protection cannot be circumvented} \tn 
% Row Count 10 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Variations which affect the exercise of rights rather than rights themselves are not subject to these provisions (e.g. if company issues more of that same class, even though it may dilute)} \tn 
% Row Count 14 (+ 4)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Dissenting members of class of shares have right to challenge variation\{\{nl\}\}\{\{nl\}\}Only shareholder holding 15\% or more of issued shares of that class may challenge; and\{\{nl\}\}Variation must be challenged in court within 21 days of date which consent was given or resolution was passed to vary class rights} \tn 
% Row Count 21 (+ 7)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Shareholders Reserve Powers}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Shareholder may direct directors to take, or refrain from taking, specified action by special resolution} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{No such special resolution invalidates anything which directors have done before passing of resolution} \tn 
% Row Count 6 (+ 3)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Shareholders may act where board is unable to do so} \tn 
% Row Count 8 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Protection for Shareholders}}  \tn
% Row 0
\SetRowColor{LightBackground}
Limit on company's authorised share capital & Articles may limit amount of share capital company may issue, though relatively rare, to protect shareholders from dilution \tn 
% Row Count 7 (+ 7)
% Row 1
\SetRowColor{white}
Limit on power of directors to issue new shares & Directors require authorisation of shareholders to issue shares in most cases \tn 
% Row Count 11 (+ 4)
% Row 2
\SetRowColor{LightBackground}
Pre-emption rights & Rights of first refusal when company issues new shares\{\{nl\}\}\{\{nl\}\}Rights apply where shares to be issued are 'ordinary shares' \{\{nl\}\}\{\{nl\}\}May be disapplied by special resolution, but uncommon\{\{nl\}\}\{\{nl\}\}Generally no right on transfer of shares \tn 
% Row Count 24 (+ 13)
% Row 3
\SetRowColor{white}
Class rights & Shares issued with various different rights \tn 
% Row Count 27 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Minority Shareholders: Unfair Prejudice}}  \tn
% Row 0
\SetRowColor{LightBackground}
Member may apply to court by petition for an order on ground that: & a) Company's affairs are being or have been conducted in a manner which is unfairly prejudicial to interests of its members generally or of some part of members (incl. himself), or\{\{nl\}\}b) any actual/proposed act/omission of company is or would be so prejudicial \tn 
% Row Count 14 (+ 14)
% Row 1
\SetRowColor{white}
Complaint must: & Relate to how the affairs of the company have been managed \tn 
% Row Count 17 (+ 3)
% Row 2
\SetRowColor{LightBackground}
Petitioner must prove: & - Their interests in their capacity as a member have been unfairly prejudiced as a result of conduct on the part of company\{\{nl\}\}E.g. members have interest in value of shares so could bring a claim if they can show value of shareholding has been seriously jeopardised by conduct of persons with de facto control\{\{nl\}\}\{\{nl\}\}- Breach of contract (articles or shareholders' agreement) or breach of some fundamental understanding \tn 
% Row Count 39 (+ 22)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Minority Shareholders: Unfair Prejudice (cont)}}  \tn
% Row 3
\SetRowColor{LightBackground}
Examples of unfairly prejudicial conduct: & - Exclusion from management\{\{nl\}\}- Mismanagement (but not poor management)\{\{nl\}\}- Breach of directors' fiduciary duties\{\{nl\}\}- Excessive remuneration and refusal to pay dividends \tn 
% Row Count 9 (+ 9)
% Row 4
\SetRowColor{white}
Who may bring a claim? & Any member of the company \tn 
% Row Count 11 (+ 2)
% Row 5
\SetRowColor{LightBackground}
Remedies: & - Court may make such order as it thinks fit for giving relief\{\{nl\}\}- Presumption that court will grant order for purchase of petitioner's shares by company or anotehr shareholder (most common remedy) \tn 
% Row Count 21 (+ 10)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Minority Shareholders: Personal Claims}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Individual shareholder may bring claim to recover loss suffered under general principles of contract or tort law} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Shareholder cannot bring personal claim where only loss alleged to have been suffered by shareholder is a reflection of loss sustained by company (e.g. shares decreasing in value due to wrong suffered by company)} \tn 
% Row Count 8 (+ 5)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Shareholder can bring personal claim where D's conduct constituted a breach of legal duty to them personally and that breach caused them personal loss, separate and distinct from loss sustained by company} \tn 
% Row Count 13 (+ 5)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.4623 cm} x{8.8077 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Financial Assistance}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Company may provide financial assistance for purchase of its own shares} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
Prohibitions apply to PUBLIC companies: & 1. {\bf{Public}} companies and their {\bf{private}} subsidiaries prohibited from providing financial assistance for purchase of shares in the {\bf{public}} company\{\{nl\}\}\{\{nl\}\}2. {\bf{Public}} companies prohibited from providing financial assistance for the purchase of shares in their {\bf{private}} holding companies \tn 
% Row Count 18 (+ 16)
% Row 2
\SetRowColor{LightBackground}
Consequences of unlawful assistance: & - Transaction will be void\{\{nl\}\}\{\{nl\}\}- Company and any officer in default will be liable to a fine and/or up to 2 years in prison \tn 
% Row Count 25 (+ 7)
% Row 3
\SetRowColor{white}
Exceptions (difficult to rely on): & - Financial assistance offered for procedures authorised in other parts of CA 2006 (e.g. redemption of shares/reduction of capital)\{\{nl\}\}\{\{nl\}\}- Will not be unlawful if company has net assets and (a) those assets are not reduced by giving of financial assistance, or (b) where assets are reduced, the assistance is provided out of distributable profits\{\{nl\}\}\{\{nl\}\}- Assistance not prohibited if purpose of assistance is not for acquisition or shares, or is incidental to some larger purpose, or is given in good faith in interest of company \tn 
% Row Count 52 (+ 27)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.4623 cm} x{8.8077 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Financial Assistance (cont)}}  \tn
% Row 4
\SetRowColor{LightBackground}
Example of exception: & Financial assistance by company for purposes of employee share scheme made in good faith in interest of company or holding company \tn 
% Row Count 7 (+ 7)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{3.2053 cm} x{3.5427 cm} x{10.122 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{3}{x{17.67cm}}{\bf\textcolor{white}{Private v Public Company - the basics}}  \tn
% Row 0
\SetRowColor{LightBackground}
Name & \seqsplit{Limited/Ltd} & Plc \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
Share \seqsplit{capital} & No \seqsplit{requirement} & Must have share capital with nominal value of at least £50,000, of which 1/4 must be paid up \tn 
% Row Count 6 (+ 4)
% Row 2
\SetRowColor{LightBackground}
\seqsplit{Directors} & Min. 1 & Min. 2 \tn 
% Row Count 8 (+ 2)
% Row 3
\SetRowColor{white}
\seqsplit{Secretary} & \seqsplit{Optional} & Mandatory - person appointed must have requisite knowledge \& experience and hold qualification \tn 
% Row Count 12 (+ 4)
% Row 4
\SetRowColor{LightBackground}
AGM & Not \seqsplit{required} & 1 per year \tn 
% Row Count 14 (+ 2)
% Row 5
\SetRowColor{white}
\seqsplit{Regulations} & CA 2006 & Higher level of regulation: CA 2006 + further legislation \tn 
% Row Count 17 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}---}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{4.4902 cm} x{12.7798 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Memorandum}}  \tn
% Row 0
\SetRowColor{LightBackground}
Under CA 1985: & Forms part of constitution with objects clause \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
Under CA 2006: & Required to register at CH\{\{nl\}\}Unrestricted objects \tn 
% Row Count 4 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{4.3175 cm} x{12.9525 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Articles}}  \tn
% Row 0
\SetRowColor{LightBackground}
\seqsplit{Types/choices} & Model Articles (MA)\{\{nl\}\}Amended MA\{\{nl\}\}Tailor Made Articles \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\seqsplit{Amendments} & Special Resolution\{\{nl\}\}Must be made bona fide in the interests of the company as a whole\{\{nl\}\}Right to demand poll vote cannot be removed in Articles \tn 
% Row Count 8 (+ 5)
% Row 2
\SetRowColor{LightBackground}
Legal effect & Binding on the company and its members\{\{nl\}\}Articles = contract between company and members in their capacity as members, regarding their rights and obligations as members \tn 
% Row Count 14 (+ 6)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Court has no jurisdiction to rectify articles} \tn 
% Row Count 15 (+ 1)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Court will not interfere to rewrite article even while outcome is improbably if article is clear, unambiguous and not commercially absurd} \tn 
% Row Count 18 (+ 3)
% Row 5
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Any member has right to enforce terms of articles against the company} \tn 
% Row Count 20 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Company is entitled to enforce and restrain breaches of articles against its members} \tn 
% Row Count 22 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Board Meetings (BM)}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Taken by majority vote on a show of hands} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{In the event of deadlock, chairman has casting vote} \tn 
% Row Count 3 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Quorum must never be less than 2\{\{nl\}\}Unless otherwise decided, quorum is 2} \tn 
% Row Count 5 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Directors may instead make decisions by unanimous agreement without holding BM - can indicate this by any means (in practice, rare)} \tn 
% Row Count 8 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{In companies with 1 director, that director can take decisions on their own} \tn 
% Row Count 10 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Reasonable notice of BM is necessary} \tn 
% Row Count 11 (+ 1)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Calling a GM}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{1. BM held at reasonable notice to convene GM} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{2. Board to give 14 clear days' notice of GM (for Ltd companies)} \tn 
% Row Count 3 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{3. GM - members vote on resolution set out in notice} \tn 
% Row Count 5 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{4. Further BM held at reasonable notice to authorise relevant action and instruct post-meeting matters (PMM)} \tn 
% Row Count 8 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{5. PMM - carried out by secretary (or director if no secretary) - copies of relevant documents filled at CH within 15 days of being passed and internal records updated} \tn 
% Row Count 12 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{All special resolutions must be filed and some ordinary. \newline If procedure is not followed, resolution may be invalid. May also be criminal sanctions.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Short-notice GMs}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{1. Must be agreed to by majority in number of members who together hold shares of 90\% or more of total shares giving rights to attend \& vote at GM (\% may be increased up to 95\% in Articles)} \tn 
% Row Count 4 (+ 4)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{2. BM held at reasonable notice to approve notice of GM and consent to short notice} \tn 
% Row Count 6 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{3. GM - Shareholders vote on resolution set out in notice} \tn 
% Row Count 8 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{4. Reconvene BM - Directors authorise relevant action and PMM} \tn 
% Row Count 10 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{5. PMM carried out and copies of relevant documents filed at CH within 15 days of being passed and internal records updated} \tn 
% Row Count 13 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{All special resolutions must be filed and some ordinary. \newline If procedure is not followed, resolution may be invalid. May also be criminal sanctions.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{GM Called by Shareholders}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Shareholders holding no less than 5\% of paid-up share capital can serve S 303 request on Board to call GM} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Upon receipt of S 303, directors must call GM within 21 days} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{GM must be held on a date within 28 days after date of notice convening GM} \tn 
% Row Count 7 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{If directors fail to call GM, all shareholders who submitted S 303 (or any of them representing more than 1/2 of voting rights) can call the GM themselves} \tn 
% Row Count 11 (+ 4)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{If shareholders call GM themselves, must be held within 3 months of date directors received initial S 303} \tn 
% Row Count 14 (+ 3)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{If shareholders call GM themselves, they can recover reasonable expenses for doing so from company; company can then recover monies back from directors} \tn 
% Row Count 18 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Annual General Meeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Public companies must hold AGM} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{AGM must be called by directors} \tn 
% Row Count 2 (+ 1)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{AGM must be held on 21 clear days' notice** within 6 months of financial year end} \tn 
% Row Count 4 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{At AGM:\{\{nl\}\}- Directors present annual report\{\{nl\}\}- Shareholder with voting rights vote on current issues} \tn 
% Row Count 7 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{**Note: day notice is given \& day of meeting are discounted in calculating clear days}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{4.3175 cm} x{12.9525 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Types of Director}}  \tn
% Row 0
\SetRowColor{LightBackground}
Executive & Appointed to Exec office\{\{nl\}\}Officer \& employee\{\{nl\}\}Works on business \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\seqsplit{Non-executive} & Officer but not employee\{\{nl\}\}Not involved in daily running\{\{nl\}\}Provide independent guidance \& advice to board\{\{nl\}\}Protect shareholder interests \tn 
% Row Count 8 (+ 5)
% Row 2
\SetRowColor{LightBackground}
Alternate & Attends board meetings and acts in director's place if actual director is incapacitated, otherwise engaged or out of the country\{\{nl\}\}Usually a fellow director or someone approved by board\{\{nl\}\}Quite rare now \tn 
% Row Count 15 (+ 7)
% Row 3
\SetRowColor{white}
Shadow & Does not claim or purport to act as a director\{\{nl\}\}Not held out as director by company\{\{nl\}\}A person in accordance with whose directions/instructions directors are accustomed to act\{\{nl\}\}Exerts influence over board \tn 
% Row Count 23 (+ 8)
% Row 4
\SetRowColor{LightBackground}
De facto & Assumes to act as director but has not been validly appointed\{\{nl\}\}Not a de jure (legal) director\{\{nl\}\}Held out as director\{\{nl\}\}Performs acts which are directorial in nature\{\{nl\}\}Part of corporate governance of company \tn 
% Row Count 31 (+ 8)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{4.3175 cm} x{12.9525 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Types of Director (cont)}}  \tn
% Row 5
\SetRowColor{LightBackground}
De jure & Director validly appointed at law \tn 
% Row Count 2 (+ 2)
% Row 6
\SetRowColor{white}
Nominee & Director appointed by shareholder \tn 
% Row Count 4 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Appointment of Directors}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Governed by Articles} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{MA: ordinary resolution of shareholders; or decision of directors} \tn 
% Row Count 3 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{All persons appointed as directors must consent to act as such} \tn 
% Row Count 5 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Consent required on form AP01 which must be sent to CH} \tn 
% Row Count 7 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Register of directors must be kept at company's registered office} \tn 
% Row Count 9 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.908 cm} x{10.362 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Director Service Contracts}}  \tn
% Row 0
\SetRowColor{LightBackground}
Service contracts & For executive directors who are employees\{\{nl\}\}Contain T\&Cs of employment\{\{nl\}\}Terms included are for the board to decide\{\{nl\}\}Requires approval by board resolution \tn 
% Row Count 7 (+ 7)
% Row 1
\SetRowColor{white}
Long-term service contracts & Where employment has 'guaranteed term' which is, or may be, over 2 years\{\{nl\}\}Requires ordinary shareholder approval\{\{nl\}\}If shareholder approval not given, term is void and contract can be terminated at any time by giving reasonable notice \tn 
% Row Count 17 (+ 10)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{No automatic entitlement for directors to be paid for their services} \tn 
% Row Count 19 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Company must keep copy of all directors' service contracts or memoranda of the terms of these contracts} \tn 
% Row Count 22 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Shareholders have right to inspect copies of service contracts/memoranda, must be provided within 7 days of request} \tn 
% Row Count 25 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Substantial Property Transactions}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Acquisition or disposal by director/connected person of a substantial non-cash asset requires ordinary shareholder approval} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Substantial asset =\{\{nl\}\}- exceeds 10\% of company's asset value and is more than £5,000; or\{\{nl\}\}- exceeds £100,000} \tn 
% Row Count 6 (+ 3)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Connected persons =\{\{nl\}\}- members of directors family (spouse/civil partner, parents, children/step-children);\{\{nl\}\}- companies in which directors or others connected hold over 20\% shares;\{\{nl\}\}- business partner or director or persons connected;\{\{nl\}\}- trustees of a trust the beneficiaries of which include director or persons connected} \tn 
% Row Count 13 (+ 7)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Shareholder may approve transaction after the event but this does not absolve directors of potential liability} \tn 
% Row Count 16 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{No shareholder approval?\{\{nl\}\} - Transaction may be voidable;\{\{nl\}\}- Directors involved liable to account for profits and indemnify for loss} \tn 
% Row Count 19 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Loans to Directors}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Loans to directors may be subject to requirement of ordinary shareholder approval} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Shareholders must be provided with information as to:\{\{nl\}\}- the nature of the transaction;\{\{nl\}\}- the amount \& purpose of loan\{\{nl\}\}- the company's liability in form of memorandum} \tn 
% Row Count 6 (+ 4)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Shareholders may approve transaction after the event but this does not absolve directors of potential liability} \tn 
% Row Count 9 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Shareholder approval not needed for:\{\{nl\}\}- expenditure on company business up to £50,000;\{\{nl\}\}- loans for defending proceedings brought against director;\{\{nl\}\}- loans for defending regulatory actions/investigations;\{\{nl\}\}- loans up to £10,000\{\{nl\}\}- intra-group transactions;\{\{nl\}\}- money lending companies (where loan made in ordinary course of company business)} \tn 
% Row Count 17 (+ 8)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{If shareholder approval not obtained and no exceptions apply:\{\{nl\}\}- transaction may be voidable\{\{nl\}\}- directors involved liable to account for any profits made and indemnify company for any losses} \tn 
% Row Count 21 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Payment for Loss of Office}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Payment for loss of office to director must be approved by ordinary shareholder resolution} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Exceptions:\{\{nl\}\}- If payment is less than £200;\{\{nl\}\}- Where payment made in good faith (a) in discharge of existing legal obligation, (b) by way of damages for breach of such obligation, (c) by way of settlement/compromise of any claim arising out of termination, or (d) by way of pension for past services} \tn 
% Row Count 9 (+ 7)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{If shareholder approval not obtained, director holds payment on trust for company and any director who authorised payment is jointly \& severally liable to company for any resulting loss} \tn 
% Row Count 13 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Shareholders Agreements}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{A contract entered into between shareholders which supplements the articles} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Can be entered into at any time} \tn 
% Row Count 3 (+ 1)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Can be between certain classes of shareholders only, but usually entered into by all shareholders} \tn 
% Row Count 5 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Can only be altered if all shareholders agree} \tn 
% Row Count 6 (+ 1)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Provisions may also be enforceable by injunction} \tn 
% Row Count 7 (+ 1)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Company may also be a party but not to any provisions which would fetter statutory powers of company} \tn 
% Row Count 9 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{An effective way of limiting the possibility of major changes within company and protecting interests of minority shareholders} \tn 
% Row Count 12 (+ 3)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Generally provide for how shareholders will vote on particularly important decisions} \tn 
% Row Count 14 (+ 2)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{New shareholders may be required to join an existing agreement by executing a Deed of Adherence} \tn 
% Row Count 16 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Minority Shareholders: Derivative Claims}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{A claim brought by a member in respect of a cause of action vested in the company seeking relief on behalf of the company} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
Who may bring a claim? & Any shareholder \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
Who may a claim be brought against? & Any director and/or another person, including former directors \tn 
% Row Count 9 (+ 4)
% Row 3
\SetRowColor{white}
Grounds for bringing a claim: & Any act or omission, actual or proposed, involving negligence, default, breach of duty or breach of trust by director\{\{nl\}\}\{\{nl\}\}It is immaterial whether cause of action arose before or after C became a shareholder \tn 
% Row Count 20 (+ 11)
% Row 4
\SetRowColor{LightBackground}
Advantages: & Allow individual members to 'right a wrong' on behalf of the company \tn 
% Row Count 24 (+ 4)
% Row 5
\SetRowColor{white}
Disadvantages: & Relief gained is only awarded to company, not individual member bringing proceedings \tn 
% Row Count 29 (+ 5)
% Row 6
\SetRowColor{LightBackground}
Two-stage application process: & 1. Court will consider whether applicant has prima facie case for permission to continue derivative claim (i.e. good cause of action);\{\{nl\}\}\{\{nl\}\}2. If 1 is satisfied, full permission hearing proceeds - court may order company and applicant to provide evidence \tn 
% Row Count 42 (+ 13)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Minority Shareholders: Derivative Claims (cont)}}  \tn
% Row 7
\SetRowColor{LightBackground}
Stage 2 - Absolute bars: & Permission must be refused if court is satisfied that:\{\{nl\}\}- person acting to promote success of company would not seek to continue claim, or\{\{nl\}\}- the relevant act/omission is yet to occur and has been authorised by company, or\{\{nl\}\}- the relevant act/omission has already occurred and was authorised before/has been ratified since \tn 
% Row Count 17 (+ 17)
% Row 8
\SetRowColor{white}
Stage 2 - Discretionary bars: & To continue derivative claim, courts must consider:\{\{nl\}\}- Whether member is acting in good faith in seeking to continue claim;\{\{nl\}\}- importance that a person acting to promote success of company would attach to continuing claim;\{\{nl\}\}- whether act/omission yet to occur could be authorised before it occurs or ratified after;\{\{nl\}\}- whether act/omission that has already occurred could be ratified;\{\{nl\}\}- whether act/omission gives rise to another cause for action that member could pursue in own right rather than on behalf of company \tn 
% Row Count 44 (+ 27)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Minority Shareholders: Derivative Claims (cont)}}  \tn
% Row 9
\SetRowColor{LightBackground}
Court will dismiss derivative claim unless: & Act is ultra vires or illegal\{\{nl\}\}Personal and individual rights of member have been infringed\{\{nl\}\}There has been fraud on the minority\{\{nl\}\}There has been non-compliance with special procedure \tn 
% Row Count 10 (+ 10)
% Row 10
\SetRowColor{white}
Costs: & Member brings the claim but company benefits from remedies\{\{nl\}\}Court may order company to indemnify C against liability in respect of costs incurred in claim/permission application/both\{\{nl\}\}C may apply for costs at same time as permission application - pre-emptive costs order \tn 
% Row Count 24 (+ 14)
% Row 11
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Court will be reluctant to grant permission to continue derivative claim is unfair prejudice claim available} \tn 
% Row Count 27 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Statutory Minority Shareholder Rights}}  \tn
% Row 0
\SetRowColor{LightBackground}
Principal statutory remedies: & Unfair prejudice \& just and equitable winding up \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
Protection against alteration to company's constitution & Special resolution of 75\% or more required to make changes to articles \tn 
% Row Count 7 (+ 4)
% Row 2
\SetRowColor{LightBackground}
Right to requisition GM & Shareholders holding not less than 5\% of voting paid-up capital can request directors to call GM \tn 
% Row Count 12 (+ 5)
% Row 3
\SetRowColor{white}
Right to demand poll vote & Members holding no less than 10\% of voting rights; OR not less than 5 members with right to vote; OR members holding cumulative shares with right to vote equalling 10\% may demand a poll vote \tn 
% Row Count 22 (+ 10)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Maintenance of Share Capital}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Company must not reduce its share capital except in certain limited circumstances} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
Impact on granting of \seqsplit{dividends/distributions:} & Company may only pay dividends out of distributable profits\{\{nl\}\}\{\{nl\}\}Share premium account cannot be used to fund distribution\{\{nl\}\}\{\{nl\}\}Most recent annual accounts, or in some cases specially prepared interim accounts, must be referred to to justify dividend payment\{\{nl\}\}\{\{nl\}\}Any transaction in which a shareholder receives value will be a distribution; disguising distributions is in breach of capital maintenance\{\{nl\}\}\{\{nl\}\}Directors who authorise unlawful distribution and shareholders who receive it may be liable\{\{nl\}\}\{\{nl\}\}Board must take steps before issuing \seqsplit{dividend/distribution} \tn 
% Row Count 32 (+ 30)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Maintenance of Share Capital (cont)}}  \tn
% Row 2
\SetRowColor{LightBackground}
Impact on reduction of share capital: & Public and private companies may reduce capital by using court procedure\{\{nl\}\}\{\{nl\}\}Requires special shareholder resolution, then order of court\{\{nl\}\}\{\{nl\}\}Creditors have right to object before court order\{\{nl\}\}\{\{nl\}\}If successful, reduction will take effect on registration of court order and statement of capital at CH\{\{nl\}\}\{\{nl\}\}Private companies may instead use solvency statement of directors and special shareholder resolution to reduce share capital\{\{nl\}\}Solvency statement must be made not more than 15 days before date on which special resolution passed, must be signed by all directors and must confirm there are no ground on which company could be unable to pay debts, and company will be able to pay debts for 1 year from date of solvency statement\{\{nl\}\}\{\{nl\}\}Requirements for private companies purchasing own shares using capital \tn 
% Row Count 43 (+ 43)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Maintenance of Share Capital (cont)}}  \tn
% Row 3
\SetRowColor{LightBackground}
Impact on purchase and redemption of own shares: & Companies are able to issue shares that are redeemable at option of either company/shareholder\{\{nl\}\}Public company needs express authorisation in articles to issue redeemable shares; Private needs statutory authorisation to issue\{\{nl\}\}\{\{nl\}\}Companies are able to purchase their own shares (subject to articles)\{\{nl\}\}\{\{nl\}\}For redeemable shares to be issued, must be at least 1 other class of shares in issue\{\{nl\}\}\{\{nl\}\}Shares may not be redeemed unless fully paid\{\{nl\}\}\{\{nl\}\}Redemption will usually be out of distributable profits\{\{nl\}\}\{\{nl\}\}Any company may purchase its own shares subject to articles\{\{nl\}\}\{\{nl\}\}Must contract with shareholder selling shares; must be approved by ordinary shareholder resolution\{\{nl\}\}\{\{nl\}\}Requirements for private companies purchasing own shares using capital \tn 
% Row Count 40 (+ 40)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.5988 cm} x{9.6712 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Debt Finance - Loan Facilities}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{An agreement between a borrower and lender giving borrower the right to borrow money on terms set out in agreement} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
Overdraft: & - On-demand facility\{\{nl\}\}- Bank can call for all of money owed at any point and demand it is repaid immediately\{\{nl\}\}- Unsuitable as long-term borrowing facility \tn 
% Row Count 11 (+ 8)
% Row 2
\SetRowColor{LightBackground}
Term loan: & - Loan of money for fixed period, repayable on certain date\{\{nl\}\}- Lender cannot demand early repayment unless borrower is in breach\{\{nl\}\}- Lender will receive interest on loan throughout the period \tn 
% Row Count 20 (+ 9)
% Row 3
\SetRowColor{white}
Revolving credit facility (RCF): & - Borrower has flexibility to borrow and repay\{\{nl\}\}- Allows company to draw down money, repay it, then re-draw it down again, then repay it\{\{nl\}\}- Borrower has flexibility to choose when it borrows and repays as against a maximum aggregate amount of capital provided by lender \tn 
% Row Count 33 (+ 13)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.4623 cm} x{8.8077 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Insolvency - Informal - Pre-Insolvency Moratorium}}  \tn
% Row 0
\SetRowColor{LightBackground}
A moratorium is a period during which: & - Creditors are unable to take action to enforce their debts;\{\{nl\}\}-Any existing court proceedings are stayed; and\{\{nl\}\}- Company may not be wound up \tn 
% Row Count 8 (+ 8)
% Row 1
\SetRowColor{white}
Gives company breathing space: & Lasts for 20 business days but can be extended by directors for further 20 business days\{\{nl\}\}\{\{nl\}\}Further extensions are possible up to 1 year \tn 
% Row Count 16 (+ 8)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Moratorium automatically comes to an end when company enters formal insolvency procedure} \tn 
% Row Count 18 (+ 2)
% Row 3
\SetRowColor{white}
Procedure to obtain: & 1. Directors must apply to court\{\{nl\}\}\{\{nl\}\}2. Application must be accompanied by:\{\{nl\}\}- Statement that company is, or is likely to become, unable to pay debts as they fall due; and\{\{nl\}\}- Statement from licensed insolvency practitioner (Monitor) stating that company is eligible and moratorium will likely result in rescue\{\{nl\}\}\{\{nl\}\}3. Comes into force at time documents are filed at court\{\{nl\}\}\{\{nl\}\}4. Monitor has responsibility to notify registrar of companies and all creditors of company that moratorium is in force\{\{nl\}\}\{\{nl\}\}5. Monitor has supervisory function during moratorium \tn 
% Row Count 48 (+ 30)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.1169 cm} x{9.1531 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Company Facing Financial Difficulties}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{The directors must review the financial performance of company and recognise when it is facing financial difficulties} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Faced with financial difficulty directors can...} \tn 
% Row Count 4 (+ 1)
% Row 2
\SetRowColor{LightBackground}
Do nothing: & Directors risk person liability and risk breaching directors' duties \tn 
% Row Count 8 (+ 4)
% Row 3
\SetRowColor{white}
Apply for pre-insolvency moratorium: & Gives company some 'breathing space' \tn 
% Row Count 10 (+ 2)
% Row 4
\SetRowColor{LightBackground}
Do a deal: & Reach informal/formal agreement with creditors with view to rescheduling debts \tn 
% Row Count 14 (+ 4)
% Row 5
\SetRowColor{white}
Appoint administrator: & Collective formal insolvency procedure considering interests of all creditors aiming to rescue company \tn 
% Row Count 19 (+ 5)
% Row 6
\SetRowColor{LightBackground}
Put company into liquidation: & Collective insolvency procedure under which business is wound up and assets transferred to creditors and, where surplus, to members \tn 
% Row Count 26 (+ 7)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Registration of Charges}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Must be registered at CH within 21 days beginning with the day after the date of creation of the charge} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Any person interested in charge may complete registration formalities} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Usually done by lender, since lender is most at risk if charge not registered} \tn 
% Row Count 7 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{If charge not registered within 21 days, charge is void against liquidator, administrator or creditor and debt becomes immediately payable\{\{nl\}\}\{\{nl\}\}Any holder of the charge reduced to unsecured creditor} \tn 
% Row Count 12 (+ 5)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Court has power to extend period of registration where:\{\{nl\}\}- failure to deliver documents was accidental or due to inadvertence or to some other sufficient cause, or\{\{nl\}\}- failure to deliver is not of a nature to prejudice the position of creditors or shareholders of company, or\{\{nl\}\}- on other grounds, it is just and equitable to grant relief} \tn 
% Row Count 19 (+ 7)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Certified copies of all charges must be kept at company's registered office} \tn 
% Row Count 21 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Order of Priority on Winding Up}}  \tn
\SetRowColor{LightBackground}
\mymulticolumn{1}{p{17.67cm}}{\vspace{1px}\centerline{\includegraphics[width=5.1cm]{/web/www.cheatography.com/public/uploads/livjharrison_1692720570_Picture 11.png}}} \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Guarantees}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Guarantees are not a security as they do not give rights in assets} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{An agreement that the guarantor will pay borrower's debt if borrower fails to do so} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Can come from companies or individuals (such as directors)} \tn 
% Row Count 6 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{5.3537 cm} x{11.9163 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Fixed and Floating Charges}}  \tn
% Row 0
\SetRowColor{LightBackground}
Fixed charge & Prevents borrower from dealing with assets subject to charge\{\{nl\}\}\{\{nl\}\}Lender will control borrower's use of charged asset\{\{nl\}\}\{\{nl\}\}Strongest form of security \tn 
% Row Count 6 (+ 6)
% Row 1
\SetRowColor{white}
Floating charge & Does not prevent borrower from dealing with assets unless and until crystallisation\{\{nl\}\}Charge floats over class of asset which fluctuates \tn 
% Row Count 12 (+ 6)
% Row 2
\SetRowColor{LightBackground}
Fixed or floating? & Book debts are a fluctuating asset and will be treated as a floating charge, unless they are paid into a blocked account which gives the lender the degree of control required for a fixed charge \tn 
% Row Count 20 (+ 8)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Crystallisation: When a floating charge crystallises, it ceases to float over all of the assets in a class and fixes onto the assets in the class charged at the time of crystallisation.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{2.9359 cm} x{14.3341 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Debt Finance - Security}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Temporary ownership, possession or other proprietary interest in an asset to ensure that debt owed is repaid (i.e. collateral for debt)} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Protects creditor in event that borrower enters formal insolvency procedure} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\seqsplit{Pledge} & Security provider gives possession of asset to creditor until debt is paid back \tn 
% Row Count 8 (+ 3)
% Row 3
\SetRowColor{white}
Lien & Creditor retains possession of asset until debt is paid back \tn 
% Row Count 10 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\seqsplit{Mortgage} & Security provider retains possession of asset but transfers ownership to creditor\{\{nl\}\}\{\{nl\}\}Subject to security provider's right to require creditor to transfer asset back when debt is repaid\{\{nl\}\}\{\{nl\}\}This right is known as the 'equity of redemption' \tn 
% Row Count 18 (+ 8)
% Row 5
\SetRowColor{white}
\seqsplit{Charge} & Security provider retains possession of asset and equitable proprietary interest is created in favour of creditor\{\{nl\}\}\{\{nl\}\}As well as interest, charging document will give lender certain contractual rights over asset if debt not paid back when it should be\{\{nl\}\}\{\{nl\}\}Two type of charge: fixed \& floating \tn 
% Row Count 28 (+ 10)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{5.0083 cm} x{12.2617 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Debt Finance - Key Terms}}  \tn
% Row 0
\SetRowColor{LightBackground}
Debenture & 1. Covers any form of debt security issued over company, including debenture stock, bonds or others, whether or not constituting charge on assets of company\{\{nl\}\}\{\{nl\}\}2. Name of particular document which creates a security by setting out details of security \tn 
% Row Count 10 (+ 10)
% Row 1
\SetRowColor{white}
\seqsplit{Representations} & Statements of fact as to legal and commercial matters\{\{nl\}\}\{\{nl\}\}Made on signing of loan agreement and repeated periodically during life of loan \tn 
% Row Count 16 (+ 6)
% Row 2
\SetRowColor{LightBackground}
\seqsplit{Undertakings} & Promises to do/not do something, or to procure that something is done/not done\{\{nl\}\}\{\{nl\}\}Known as covenants \tn 
% Row Count 20 (+ 4)
% Row 3
\SetRowColor{white}
Event of default & Breach of representations or undertakings gives bank contractual remedies where breach constitutes event of default\{\{nl\}\}\{\{nl\}\}Events of default clause vital in giving bank power to call in its money early if borrower shows signs of becoming enhanced credit risk \tn 
% Row Count 30 (+ 10)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{5.181 cm} x{12.089 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Debt Finance Documents}}  \tn
% Row 0
\SetRowColor{LightBackground}
Term sheet & Statement of key terms of transaction agreed by lender and borrower\{\{nl\}\}\{\{nl\}\}Not intended to be legally binding, but statement of understanding \tn 
% Row Count 6 (+ 6)
% Row 1
\SetRowColor{white}
Loan agreement & Sets out main commercial terms of loan\{\{nl\}\}\{\{nl\}\}Includes information from term sheet in much more detail \tn 
% Row Count 10 (+ 4)
% Row 2
\SetRowColor{LightBackground}
Security document & If loan is secured, separate security document will be negotiated and entered into \tn 
% Row Count 13 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Debt Finance - Debt Securities}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{In return for finance provided by investor, company issues security acknowledging investor's rights} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Security = piece of paper acknowledging the debt, which can be kept or sold onto another investor} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{At maturity date of security, company pays value of security back to holder} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Example: a bond\{\{nl\}\}- Issuer (company) promises to pay value of bond to holder of that bond at maturity\{\{nl\}\}- Company also pays interest at particular periods, usually biannually\{\{nl\}\}- Bonds are issued with view to being traded\{\{nl\}\}- Market on which bonds may be traded known as capital market\{\{nl\}\}- Whoever holds bond at maturity will receive value of bond back from issuer\{\{nl\}\}- Private companies can only issue bonds to targeted investors and not public indiscriminately} \tn 
% Row Count 16 (+ 10)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{4.6629 cm} x{12.6071 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Company Voluntary Arrangement (CVA)}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{A compromise between company and creditors} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Creditors agree to part payment of debts or to new timetable for repayment} \tn 
% Row Count 3 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Agreement must be reported to court, but no requirement for court to approve agreement} \tn 
% Row Count 5 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{CVA supervised and implemented by Insolvency Practitioner} \tn 
% Row Count 7 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Company's directors remain in post, involved in implementation of CVA} \tn 
% Row Count 9 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Can be used together with \seqsplit{administration/liquidation}} \tn 
% Row Count 11 (+ 2)
% Row 6
\SetRowColor{LightBackground}
Setting up CVA: & 1. Directors draft written proposals and appoint nominee\{\{nl\}\}If company in \seqsplit{liquidation/administration}, administrator/liquidator drafts\{\{nl\}\}\{\{nl\}\}2. Directors submit proposals and statement of company's affairs to nominee\{\{nl\}\}\{\{nl\}\}3. Nominee considers proposals and must report to court within 28 days on whether to call a meeting of company and creditors\{\{nl\}\}\{\{nl\}\}4. Nominee gives 14 days' notice of meeting to creditors\{\{nl\}\}Meeting of members must take place within 5 days of creditors' decision\{\{nl\}\}\{\{nl\}\}5. Proposals must be approved by 75\% in value of creditors (excl. secured creditors) {\bf{and}} simple majority of members\{\{nl\}\}\{\{nl\}\}6. Nominee reports to court on approval\{\{nl\}\}\{\{nl\}\}7. Nominee becomes supervisor and implements proposals \tn 
% Row Count 37 (+ 26)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{4.6629 cm} x{12.6071 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Company Voluntary Arrangement (CVA) (cont)}}  \tn
% Row 7
\SetRowColor{LightBackground}
Effect of CVA: & Binding on all unsecured creditors, including those who did not vote or voted against it\{\{nl\}\}\{\{nl\}\}Secured/preferential creditors not bound unless they unanimously consent \tn 
% Row Count 6 (+ 6)
% Row 8
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{CVAs relatively rarely used} \tn 
% Row Count 7 (+ 1)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Restructuring Plan}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Compromise company's creditors and shareholders and restructure liabilities so company can return to solvency} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Can bind secured creditors} \tn 
% Row Count 4 (+ 1)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Can only be used by companies which have/are likely to encounter financial difficulties} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Creditors and members must be divided into classes; each class which votes on Plan must be asked to approve it} \tn 
% Row Count 9 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Must be approved by at least 75\% in value of each class voting} \tn 
% Row Count 11 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Court must sanction Plan and it will then bind {\bf{all}} creditors} \tn 
% Row Count 13 (+ 2)
% Row 6
\SetRowColor{LightBackground}
Who can apply to court for Plan? & - Company\{\{nl\}\}- Any creditor\{\{nl\}\}- Any member\{\{nl\}\}- Liquidator (if in liquidation)\{\{nl\}\}- Administrator (if in administration) \tn 
% Row Count 20 (+ 7)
% Row 7
\SetRowColor{white}
Court can sanction Plan if just and equitable even if: & - One or more classes do not vote to approve it\{\{nl\}\}- It brings about cross class cramdown\{\{nl\}\}- It brings about a cramdown of shareholders \tn 
% Row Count 28 (+ 8)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Plan is likely to be used by directors following pre-insolvency moratorium} \tn 
% Row Count 30 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.908 cm} x{10.362 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Wrongful Trading}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Establishes liability for directors who carry on business negligently rather than fraudulently} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
Who may bring a claim? & - Liquidator;\{\{nl\}\}- Administrator; or\{\{nl\}\}- Third Party (assigned by either above) \tn 
% Row Count 6 (+ 4)
% Row 2
\SetRowColor{LightBackground}
Against whom? & - Any person who was director at relevant time (including shadow, de facto \& non-executive) \tn 
% Row Count 10 (+ 4)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{No criminal provisions} \tn 
% Row Count 11 (+ 1)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{When directors become aware, or ought to become aware than insolvent \seqsplit{liquidation/administration} is inevitable, they are under duty to take {\bf{every step}} possible to minimise potential losses to creditors} \tn 
% Row Count 16 (+ 5)
% Row 5
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{If director fails this duty, court can order director to contribute to insolvent estate by compensation for losses that body of creditors have suffered from wrongful condct} \tn 
% Row Count 20 (+ 4)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Liability imposes personal liability on directors} \tn 
% Row Count 21 (+ 1)
% Row 7
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{No requirement to show intent or dishonesty} \tn 
% Row Count 22 (+ 1)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{If company has not reached point of no return, wrongful trading liability can not arise; no need to consider 'every step' defence} \tn 
% Row Count 25 (+ 3)
% Row 9
\SetRowColor{white}
Examples of 'every step': & - Voicing concerns at regular BMs;\{\{nl\}\}- Seeking independent financial \& legal advice;\{\{nl\}\}- Ensuring adequate, current financial info available;\{\{nl\}\}- Suggesting reductions in overheads/liabilities;\{\{nl\}\}- Not incurring further credit \tn 
% Row Count 35 (+ 10)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.908 cm} x{10.362 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Wrongful Trading (cont)}}  \tn
% Row 10
\SetRowColor{LightBackground}
Burden of proof? & - On director to establish they took every step \tn 
% Row Count 2 (+ 2)
% Row 11
\SetRowColor{white}
Reasonably diligent person: & - Facts which director ought to have known/ascertained, conclusions they ought to have reached and steps ought to have taken are those which would have been \seqsplit{known/ascertained/reached/taken} by reasonably diligent person with general knowledge, skill and experience expected (objective) and actual knowledge, skill and experience of the relevant director (subjective) \tn 
% Row Count 18 (+ 16)
% Row 12
\SetRowColor{LightBackground}
Relief? & Not available \tn 
% Row Count 19 (+ 1)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{'Insolvency' restricted to balance sheet test}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{6.0445 cm} x{11.2255 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Fraudulent Trading}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Exceptionally high bar for fraudulent trading} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
Who may bring a claim? & - Liquidator; or\{\{nl\}\}- Administrator \tn 
% Row Count 3 (+ 2)
% Row 2
\SetRowColor{LightBackground}
Against whom? & - Any person knowingly party to carrying on of any business of company with intent to defraud creditors or for any fraudulent purpose \tn 
% Row Count 9 (+ 6)
% Row 3
\SetRowColor{white}
Actual dishonesty: & - Must be proven for claim to succeed\{\{nl\}\}- Assessed on subjective not objective basis\{\{nl\}\}- Knowledge includes suspicion of relevant facts together with deliberate decision to avoid confirming they did exist\{\{nl\}\}- Not necessary to show {\bf{all}} creditors have been defrauded \tn 
% Row Count 20 (+ 11)
% Row 4
\SetRowColor{LightBackground}
Remedies: & - Civil liability to contribute to funds available to body of unsecured creditors suffering loss caused by the fraudulent trading;\{\{nl\}\}- Also corresponding criminal claim for fraudulent trading (may be brought by same people but court approval required);\{\{nl\}\}- Contribute to company's assets as court thinks proper\{\{nl\}\}- Court likely to make disqualification order against person if director \tn 
% Row Count 36 (+ 16)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.0807 cm} x{10.1893 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Misfeasance}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{On a winding up, action may be brought against directors for any breaches of duty committed by them} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
Who can bring claim? & - Liquidator (but not administrator);\{\{nl\}\}- Official Receiver; or\{\{nl\}\}- Any creditor/contributory \tn 
% Row Count 7 (+ 5)
% Row 2
\SetRowColor{LightBackground}
Burden of proof? & On C to establish misfeasance on part of director or other D\{\{nl\}\}Not for D to justify their conduct \tn 
% Row Count 12 (+ 5)
% Row 3
\SetRowColor{white}
Against whom? & - Any person who is/was officer of company (incl present/former directors, managers or secretaries);\{\{nl\}\}- Any others who acted in promotion, formation of management of company; and\{\{nl\}\}- A liquidator or administrative receiver (or administrator under Schedule B1) \tn 
% Row Count 24 (+ 12)
% Row 4
\SetRowColor{LightBackground}
What amounts to misfeasance? & 1. Misapplication of money/assets of company;\{\{nl\}\}2. Breach of statutory provision/duty (E.g. unlawful loans to director; director acting ultra vires; failing to seek approval for substantial property transaction);\{\{nl\}\}3. Directors responsible for transactions at an undervalue, or preferences, may thereby commit a misfeasance; and\{\{nl\}\}4. Breach of duty to exercise reasonable care, skill and diligence (negligence) \tn 
% Row Count 43 (+ 19)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.0807 cm} x{10.1893 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Misfeasance (cont)}}  \tn
% Row 5
\SetRowColor{LightBackground}
Remedies: & Repayment, restoration or contribution to company's assets as it thinks just\{\{nl\}\}Director may claim relief where they acted honestly and reasonable and ought fairly to be excused\{\{nl\}\}Finding of misfeasance may lead to disqualification order \tn 
% Row Count 11 (+ 11)
% Row 6
\SetRowColor{white}
Ratification: & Not possible for shareholders to ratify what amounts to breach of directors duties at a time when there is a reasonable prospect that company will go into insolvent liquidation or administration \tn 
% Row Count 20 (+ 9)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Role/Power of Liquidator}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Management and fiduciary powers of directors are transferred to liquidator} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Liquidator must act in good faith, avoid conflicts of interest and not make secret profit} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Must be qualified insolvency practitioner or Official Receiver (appointed by court in short term)} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Acts as officer of court} \tn 
% Row Count 7 (+ 1)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Principle functions:\{\{nl\}\}- To secure and realise assets of company then distribute to creditors; and\{\{nl\}\}- Take into their custody/control all company's property} \tn 
% Row Count 11 (+ 4)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Liquidator may:\{\{nl\}\}- Sell any property;\{\{nl\}\}- Execute deeds and other documents in name of company\{\{nl\}\}- Raise money on security of assets;\{\{nl\}\}- Make/draw bill of exchange or promissory note in name of company\{\{nl\}\}- Appoint agent to do any business for them;\{\{nl\}\}- Commence/defend court proceedings in name of company;\{\{nl\}\}- Pay debts and compromise claims} \tn 
% Row Count 19 (+ 8)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Have duty to preserve company's property and maximise value of assets available for distribution} \tn 
% Row Count 21 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Can avoid certain antecedent transactions to maximise amount of assets available (many of these powers also apply to administrators)} \tn 
% Row Count 24 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Creditors' Voluntary Winding Up (CVL)}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Commenced by special resolution of shareholders but under effective control of creditors who can choose liquidator} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Where directors' declaration of solvency not made, liquidation will be CVL} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Shareholders may nominate person to be liquidator} \tn 
% Row Count 6 (+ 1)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Within 14 days of special resolution being passed, directors must ask creditors to either approve nominated liquidator/put forward their own choice} \tn 
% Row Count 9 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Creditors' liquidator nomination takes precedence} \tn 
% Row Count 10 (+ 1)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Directors must draw up statement of company's affairs (assets and liabilities) and send to creditors} \tn 
% Row Count 12 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Conversion of MVL to CVL}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{If liquidator on MVL consider company unable to pay debts and interest within period stated in directors' declaration, they must change MVL to CVL} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Must prepare and send statement of company's affairs to creditors} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Creditors may nominate person to be liquidator (often insolvency practitioner who was appointed to deal with MVL)} \tn 
% Row Count 8 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{CVL takes effect from date of nomination of liquidator} \tn 
% Row Count 10 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Members' Voluntary Winding Up (MVL)}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Members must pass special resolution to place company into MVL} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Members must pass ordinary resolution to appoint liquidator} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Company must be solvent} \tn 
% Row Count 5 (+ 1)
% Row 3
\SetRowColor{white}
Directors required to swear declaration of solvency stating: & - They have made full enquiry into company's affairs\{\{nl\}\}- They have formed opinion that company will be able to pay creditors in full, with interest at official rate, within period of no more than 1 year from commencement of winding up\{\{nl\}\}- Company's assets and liabilities as at latest practicable date before making declaration \tn 
% Row Count 22 (+ 17)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Any director making declaration of solvency who does not have reasonable grounds for the opinion liable to fine/imprisonment} \tn 
% Row Count 25 (+ 3)
% Row 5
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{If debts are not actually paid in full within specified period, presumed that director did not have reasonable grounds for opinion} \tn 
% Row Count 28 (+ 3)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Winding up commences when special resolution passed} \tn 
% Row Count 30 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Common Ground for Compulsory Liquidation}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Most common ground for winding up petition is company's inability to pay debts} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Can be evidenced by:} \tn 
% Row Count 3 (+ 1)
% Row 2
\SetRowColor{LightBackground}
1. Failure to comply with creditor's statutory demand & - Written demand in prescribed form requiring company to pay specific debt\{\{nl\}\}- Demand can only be used if debt exceeds £750 and is not disputed on substantial grounds\{\{nl\}\}- Company has 21 days to pay debt, failing which creditor has right to petition court to wind up company \tn 
% Row Count 17 (+ 14)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{2. Creditor sues company, obtains judgment and fails in attempt to execute judgment debt} \tn 
% Row Count 19 (+ 2)
% Row 4
\SetRowColor{LightBackground}
3. Proof to satisfaction of court that company is unable to pay debts as they fall due & - Cash-flow test (usually satisfied by going through process 1, but not essential)\{\{nl\}\}- Consideration of debts falling due in reasonably near future \tn 
% Row Count 27 (+ 8)
% Row 5
\SetRowColor{white}
4. Proof to satisfaction of court that value of company's assets is less than amount of its liabilities & - Must consider contingent and prospective liabilities ('balance sheet test')\{\{nl\}\}- Burden of proof on party asserting balance-sheet insolvency \tn 
% Row Count 35 (+ 8)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{5.8718 cm} x{11.3982 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Compulsory Liquidation}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Court-based process} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Applicant presents winding up petition to court to request winding up order against company} \tn 
% Row Count 3 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Granted petition by court operates in favour of all creditors and contributories (members and some former members)} \tn 
% Row Count 6 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Official Receiver will become liquidator and continue in office until another person is appointed} \tn 
% Row Count 8 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Official Receiver will notify CH and all known creditors of liquidation} \tn 
% Row Count 10 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Official Receiver has power to summon separate meetings of creditors and contributories to choose person to become liquidator in their place} \tn 
% Row Count 13 (+ 3)
% Row 6
\SetRowColor{LightBackground}
Who can apply? & - Creditor\{\{nl\}\}- Company (by shareholders where insufficient assets to fund voluntary liquidation)\{\{nl\}\}- Directors (by board resolution where insufficient funds)\{\{nl\}\}- Administrator\{\{nl\}\}- Administrative receiver\{\{nl\}\}- Supervisor of CVA\{\{nl\}\}- SoS for Business, Energy \& Industrial Strategy (on public policy grounds) \tn 
% Row Count 26 (+ 13)
% Row 7
\SetRowColor{white}
Grounds for petition: & - Unable to pay debts\{\{nl\}\}- Just and equitable\{\{nl\}\}- Special resolution passed to be wound up\{\{nl\}\}- Public company that has not issued requisite share capital and over 1 year has passed since registration as plc\{\{nl\}\}- Old public company with meaning of Consequential Provisions Act\{\{nl\}\}- Company does not commence business within year of incorporation or suspends business for whole year \tn 
% Row Count 42 (+ 16)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{5.8718 cm} x{11.3982 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Compulsory Liquidation (cont)}}  \tn
% Row 8
\SetRowColor{LightBackground}
\seqsplit{Consequences:} & - Certain dispositions of company's property, transfer of shares and changes to members will be void if made after commencement of winding up \tn 
% Row Count 6 (+ 6)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Liquidation/Winding Up}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Most common type of insolvency procedure} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Process by which company's business is wound up and assets transferred to creditors and (where surplus) to members} \tn 
% Row Count 4 (+ 3)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Both solvent and insolvent companies may be wound up} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Liquidators function is to:\{\{nl\}\}1. Realise company's assets for cash\{\{nl\}\}2. Determine identity of company's creditors and amount owed to each, then\{\{nl\}\}3. Pay dividend to creditors on proportionate basis relative to size of their determined claims} \tn 
% Row Count 11 (+ 5)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Creditors of same rank are said to rank 'pari passu'} \tn 
% Row Count 13 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Liquidation not a rescue mechanism; Liquidator has very limited powers to carry on business of company} \tn 
% Row Count 16 (+ 3)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Usually close business and dismiss employees soon after appointment, and sell assets on piecemeal basis rather than selling anything as a going concern} \tn 
% Row Count 20 (+ 4)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Common for companies to enter liquidation after having been through different insolvency procedure first} \tn 
% Row Count 23 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Receivership}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Individual enforcement procedure which benefits only the appointing creditor} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Most common type is fixed charge receivers} \tn 
% Row Count 3 (+ 1)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Fixed charge receivers appointed by holders of fixed charge pursuant to terms of security documentation} \tn 
% Row Count 6 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Appointed to enforce security and recover debt owing to their appointor (often a bank)} \tn 
% Row Count 8 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Owe duties primarily and exclusively to appointer to act in good faith in course of appointment} \tn 
% Row Count 10 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Usually have extensive powers set out in security documents and some limited powers under Law of Property Act 1925 (e.g. ability to sell, mortgage and collect rents from property)} \tn 
% Row Count 14 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Pre-Packaged Sales in Administration}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Where business of insolvent company is prepared for sale to selected buyer prior to company's entry into administration} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Agreed sale carried out by insolvency practitioner shortly after their appointment} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Pre-pack purchaser will often be one or more of existing owners/directors of insolvent company} \tn 
% Row Count 7 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{17.67cm}}{Controversial} \tn 
% Row Count 8 (+ 1)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{17.67cm}}{Requires clear, comprehensive and timely explanations to creditors following pre-packaged sales} \tn 
% Row Count 10 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.2896 cm} x{8.9804 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Administration}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Aims to rescue company which is insolvent if at all possible, or achieve better result for creditors if not} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Administrator acts in interests of creditors as a whole} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Administrators may be able to rescue company which will continue trading; other companies may proceed into liquidation} \tn 
% Row Count 8 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Administrators required to perform functions in interests of creditors as a whole and owe duties to court and creditors collectively} \tn 
% Row Count 11 (+ 3)
% Row 4
\SetRowColor{LightBackground}
Appointment - Court procedure: & Court may appoint administrator where company is or is likely to become unable to pay its debts on application of company, directors, or one or more creditors\{\{nl\}\}\{\{nl\}\}Appointment may only be made where order is reasonably likely to achieve purpose of administration \tn 
% Row Count 25 (+ 14)
% Row 5
\SetRowColor{white}
Appointment - Out of court procedure: & The company, directors, or qualifying floating charge holder (often bank) may appoint administrator\{\{nl\}\}\{\{nl\}\}Directors cannot use this procedure where creditor has presented petition for winding up of company; here, director can apply to court or QFCH can use out of court procedure \tn 
% Row Count 40 (+ 15)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.2896 cm} x{8.9804 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Administration (cont)}}  \tn
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Directors unable to exercise any management powers without consent of administrator} \tn 
% Row Count 2 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Once appointed, administrator has up to 8 weeks to produce report setting out proposals for company's future\{\{nl\}\}\{\{nl\}\}Report must be put to all creditors for approval\{\{nl\}\}\{\{nl\}\}If reject, company usually put into liquidation\{\{nl\}\}\{\{nl\}\}If accepted, administrator has options for company to exit administration} \tn 
% Row Count 9 (+ 7)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{12-month fixed time limit for completion of administrations, though possible to obtain extensions} \tn 
% Row Count 11 (+ 2)
% Row 9
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Administrator must report outcome to court} \tn 
% Row Count 12 (+ 1)
% Row 10
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Company can benefit from moratorium during administration} \tn 
% Row Count 14 (+ 2)
% Row 11
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{During administration, all documents \& website must state company is in administration} \tn 
% Row Count 16 (+ 2)
% Row 12
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{During administration moratorium, administrators may sell property subject to floating charge} \tn 
% Row Count 18 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.5988 cm} x{9.6712 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Preferences}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Prevents creditor from obtaining improper advantage over other creditors at time when company is insolvent} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
Who may bring a claim? & - Liquidator; or\{\{nl\}\}- Administrator \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
Company gives preference if: & 1. Person is a creditor (or surety/guarantor of any of debts/liabilities); and\{\{nl\}\}\{\{nl\}\}2. Company does anything/allows anything to be done which has effect of putting that person in better position in event of company going into insolvent liquidation than they would otherwise have been in \tn 
% Row Count 19 (+ 14)
% Row 3
\SetRowColor{white}
Preference will be voidable if: & 1. It was given within relevant time (in 6 months preceding onset of insolvency)(relevant time extended to 2 years for connected persons)\{\{nl\}\}\{\{nl\}\}2. It was proved company was insolvent on cash flow/balance sheet basis at time of transaction or became so as a result of it\{\{nl\}\}\{\{nl\}\}3. It is proved that company was influenced by desire to prefer creditor (subjective test) \tn 
% Row Count 37 (+ 18)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.5988 cm} x{9.6712 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Preferences (cont)}}  \tn
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{If preference given to connected person/associate, there is rebuttable presumption that company was influenced by desire to prefer creditor (shifts burden to preferred person to rebut)} \tn 
% Row Count 4 (+ 4)
% Row 5
\SetRowColor{white}
Defences: & Absence of desire to prefer (e.g. action was result of genuine commercial pressure to continue trading and avoid defaults) \tn 
% Row Count 10 (+ 6)
% Row 6
\SetRowColor{LightBackground}
Sanctions: & Court has discretion to make order to restore position as if company had not given preference \tn 
% Row Count 15 (+ 5)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{4.6629 cm} x{12.6071 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Transactions Defrauding Creditors (TDC)}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Claims may be brought by victim of transaction in question where company is insolvent/solvent} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
Must have been: & - A TUV; and\{\{nl\}\}- Intention/purpose of transaction putting assets beyond reach of creditors or otherwise prejudice their interests, including future creditors unknown at time of transaction. \tn 
% Row Count 9 (+ 7)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Insolvency practitioners may prefer to bring TUV claim over TDC claim as no burden of proof that purpose was to put assets beyond reach of creditors/prejudice them} \tn 
% Row Count 13 (+ 4)
% Row 3
\SetRowColor{white}
Who may claim? & - Liquidator/administrator;\{\{nl\}\}- Supervisor of voluntary arrangement; or\{\{nl\}\}- Victim of relevant transaction \tn 
% Row Count 17 (+ 4)
% Row 4
\SetRowColor{LightBackground}
\seqsplit{Sanctions:} & Court may make such order as it thinks fit to restore position to what it would have been but for transaction \tn 
% Row Count 21 (+ 4)
% Row 5
\SetRowColor{white}
\seqsplit{Advantage:} & TDC does not face risk of becoming time-barred in same way as TUV \tn 
% Row Count 24 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.9442 cm} x{9.3258 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Avoidance of Certain Floating Charges}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Prevents unsecured creditor obtaining floating charge to secure existing loan for no new consideration at expense of other unsecured creditors} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Only applies in \seqsplit{liquidation/administration}} \tn 
% Row Count 4 (+ 1)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Automatic procedure; no need for office-holder to challenge floating charge by bringing legal proceedings} \tn 
% Row Count 7 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Legal proceedings may only be brought where there is a dispute between floating charge holder and office holder over application of avoiding the charge} \tn 
% Row Count 11 (+ 4)
% Row 4
\SetRowColor{LightBackground}
For floating charge to be invalid: & 1. Must have been created within relevant time (12 months preceding onset of insolvency, extended to 2 years for charge granted to connected person)\{\{nl\}\}\{\{nl\}\}2. Unless granted to connected person/associate, must be proved that company was insolvent on either cash-flow/balance sheet basis at time of floating charge's creation, or became insolvent because of charge creation \tn 
% Row Count 29 (+ 18)
% Row 5
\SetRowColor{white}
When are floating charges valid? & Even if above holds, charge will be valid to extent that 'new money' or fresh consideration is provided to the company (or existing debts are extinguished) in return for grant of charge on/after its creation \tn 
% Row Count 39 (+ 10)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{7.9442 cm} x{9.3258 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Avoidance of Certain Floating Charges (cont)}}  \tn
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Where floating charge is void here, only security (and its advantage to creditor in order of priority) is void, not the debt itself} \tn 
% Row Count 3 (+ 3)
% Row 7
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Floating charge is also void against liquidator, administrator and other creditors if not duly registered with CH} \tn 
% Row Count 6 (+ 3)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{2}{x{17.67cm}}{Floating charge to creditor may also be voidable as TUV or preference} \tn 
% Row Count 8 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Transactions at an Undervalue (TUV)}}  \tn
% Row 0
\SetRowColor{LightBackground}
TUV = & - A gift; or\{\{nl\}\}- A transaction for consideration the value of which, in money/money's worth, is significantly less in value than consideration provided by the company \tn 
% Row Count 9 (+ 9)
% Row 1
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Granting of security/payment of dividend may be held to amount to TUV} \tn 
% Row Count 11 (+ 2)
% Row 2
\SetRowColor{LightBackground}
Court may set aside transaction as a TUV if: & 1. Company made a gift/entered into transaction for consideration which was significantly less value than consideration provided by company\{\{nl\}\}\{\{nl\}\}2. It took place within relevant time (2 years preceding onset of insolvency)\{\{nl\}\}\{\{nl\}\}3. It is proved by applicant that company was insolvent at time of transaction or became so as a result of it \tn 
% Row Count 29 (+ 18)
% Row 3
\SetRowColor{white}
\mymulticolumn{2}{x{17.67cm}}{Where TUV entered into with person connected, insolvency is presumed unless connected person proves otherwise} \tn 
% Row Count 32 (+ 3)
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{17.67cm}{x{8.635 cm} x{8.635 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Transactions at an Undervalue (TUV) (cont)}}  \tn
% Row 4
\SetRowColor{LightBackground}
No order will be made to set aside transaction if: & 1. Company entered into transaction in good faith for purpose of carrying on business; and\{\{nl\}\}\{\{nl\}\}2. At the time, there were reasonable grounds for believing transaction would benefit company \tn 
% Row Count 10 (+ 10)
% Row 5
\SetRowColor{white}
Sanctions: & - Court has discretion to make such order as it thinks fit to restore position as if company had not entered transaction \tn 
% Row Count 16 (+ 6)
\hhline{>{\arrayrulecolor{DarkBackground}}--}
\end{tabularx}
\par\addvspace{1.3em}



\end{document}