SQE1 · FLK1 · Practice
Business Law and Practice — single-best-answer practice
Five options, one best answer, no negative marking. Submit each question to see the rationale and the controlling authority before moving on.
Question 1 of 20 · Business Law and PracticeScore 0 / 0
A company incorporated in England and Wales has an issued share capital of 100 ordinary shares of £1 each, all fully paid. The company's articles are the unamended model articles for private companies limited by shares. The sole director wishes to issue 50 new ordinary shares to a prospective investor. The company has two shareholders: one holding 60 shares and another holding 40 shares. No general meeting has been called. Can the director lawfully allot the 50 new shares without further authority?