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SECTION B – COMPANY PROCEDURE 6.     After receiving Pete’s complaint LUPEL Ltd’s board members meet and decide that he is right and they want to resolve the matter. They blame their actions on the pressure caused by short term poor financial performance by the company and decide that the best way around this is to increase the company’s capital by a further £500,000. As finance director, Pete is aware of current terms being offered to borrow money but wants to consider alternatives including equity financing.   Advise Pete as to how the investment might be structured and the advantages and disadvantages to LUPEL Limited. (8 marks)

SECTION C – INSOLVENCY 8.     A director deliberately took out a £17,000 loan for the company, knowing that the company cannot repay the loan.  In this scenario, do you think the director is possibly liable for one of the following? (2 marks)

SECTION B – COMPANY PROCEDURE 3.     Advise Pete as to whether LUPEL Ltd has complied with all of its legal obligations in relation to the matters set out in numbered paragraph 2 of his letter of complaint. (5 marks)

SECTION C – INSOLVENCY 12.   Advise the directors as to their options with regard to formal corporate procedures to attempt to rescue the business and the advantages and disadvantages of each from the perspective of Eight till Late Limited and its directors?  (16 marks) 

SECTION B – COMPANY PROCEDURE 5.     Advise Pete as to what remedies he may have as a shareholder in respect of the matters set out in numbered paragraphs 1 and 3 of the complaint. (3 marks)

SECTION A – PARTNERSHIP 1.     Alice is proposing to reply to Porchester Auctions that she will only sign a cheque for £1,200 for the Howard Jackson, i.e. 40% of the maximum Ben was authorised to spend. She also intends to tell them that “Ben will not let me pay for the Van Hulig oil”. Advise Alice whether Wessex Arts is liable to Porchester Auctions on these transactions.  (10 marks) 

SECTION B – COMPANY PROCEDURE 3.     Advise Pete as to whether LUPEL Ltd has complied with all of its legal obligations in relation to the matters set out in numbered paragraph 2 of his letter of complaint. (5 marks)

SECTION C – INSOLVENCY 8.     A director deliberately took out a £17,000 loan for the company, knowing that the company cannot repay the loan.  In this scenario, do you think the director is possibly liable for one of the following? (2 marks)

SECTION B – COMPANY PROCEDURE 4.     Advise Pete whether the board of LUPEL Ltd has complied with all of its obligations under company law in relation to the matters in numbered paragraphs 1 and 3 of his letter of complaint. (9 marks)

SECTION C – INSOLVENCY 12.   Advise the directors as to their options with regard to formal corporate procedures to attempt to rescue the business and the advantages and disadvantages of each from the perspective of Eight till Late Limited and its directors?  (16 marks)