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Review Your SQE 1 Practice Records

Examination Timing: 00H01M10S

Emily Clarke, a solicitor advising a software company on a takeover, is helping her client purchase a controlling interest in a target company. Emily's firm is not authorised by the FCA.

When a corporate solicitor gives advice in connection with the purchase or sale of shares in a company, which of the following best describes whether they can rely on the 'body corporate' exclusion?

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You have chosen the incorrect answer.
Your selected option: E

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The 'body corporate' exclusion can apply even if the shares carry less than 50% of the voting rights, particularly where the transaction aims to transfer day-to-day control of the company. The exclusion applies to any body corporate, including both public and private limited companies. Therefore, options B, C, D, and E are incorrect. The correct application of the 'body corporate' exclusion is when the shares carry 50% or more of the voting rights or when control is effectively transferred.

Key Point: This question evaluates the understanding of the 'body corporate' exclusion under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, especially in the context of share transactions and control transfer.

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