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

11 Questions3 MinutesCreated by AnalyzingLaw101

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

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

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

Quiz on section 216 of the Insolvency Act

Understanding Section 216 of the Insolvency Act Quiz

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