Quiz on section 216 of the Insolvency Act
Understanding Section 216 of the Insolvency Act Quiz
Test your knowledge on Section 216 of the Insolvency Act with our comprehensive quiz! This quiz covers key aspects of prohibited names and the implications for directors and individuals connected to insolvent companies.
What you will learn:
- When Section 216 applies
- Who is affected by Section 216
- Legal implications of using prohibited names
- Exceptions and other important details
When does section 216 apply?
When a company enteres administration
When a company enters insolvent liquidation
When a company enters solvent liquidation
All of the above
Whom does section 216 apply to?
Shareholder
Only a person who was a director at the time the company entered the relevant process
A person who was a director at any time in the period of 12 months before the company entered the relevant process
A person who was a shadow director but only if that person was a shadow director for the period of at least 12 months prior to the relevant process
Which of the following statements is true about a prohibited name?
Trading name can be a prohibited name provided it is registered as a trade mark
It is a name similar to the name by which the liquidated company was known at any time in the period of 18 months prior to the relevant process
Only registered name can be a prohibited name
None of the above
How many exceptions there are to the general prohibition in section 216?
1
2
3
4
What is the maximum period of a temporary protection when a person to whom section 216 applies makes an application to the court for permission to use the prohibited name?
4 weeks of the commencment of liquidation
6 weeks from the date of service of the application
6 weeks from the commencment of the liquidation
6 months from the date of the application was issued
A person to whom section 216 applies can use a prohibited name without taking any action when the new business has been known by that name and trading for the period of 12 months prior to the liquidation of the liquidated company
Yes
No
Yes, provided the name of the new company was registered for the whole period of 12 months prior to the liquidation of the old company
A person to whom section 216 applies cannot be a director of the company with a prohibited name but can be involved in its management:
True
False
When does a notice must be given to creditors when a person to whom restrictions apply is purchasing the whole or substantially the whole of the business of the liquidated company from the appointed office-holder in order to be able to use the prohibited name?
21 days from the date of completion of the transaction
28 days from the date of completion of the transaction
A notice must be given before the completion of the transaction
None of the above
A person acting in breach of section 216 can face:
Only civil liability
Criminal liability,which may only lead to a fine
Civil liability and criminal liability, which can lead to imprisonment or both
Either civil liability or criminal, which can lead to imprisonment
Which of the following is true about penalties for breach of section 216?
Criminal liability only applies to de jure directors
Criminal liability applies to any person involved in the management of a company with a prohibted name who acts or is willing to act under instructions given by the director/shadow director of the liquidated company
Civil liability applies to any person involved in the management of a company with a prohibted name who acts or is willing to act under instructions given by the director/shadow director of the liquidated company
Civil liability applies only to de jure and shadow directors
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