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Review Your SQE 1 Practice Records

Examination Timing: 00H02M35S

Sophia is a new trainee solicitor at Hartwell & Co LLP and has been left in charge of the office. Her supervising solicitor, Richard, informed her that a client would be arriving for a meeting and, if he was not back in time, she should assist the client. The client, Mr. Harrison, arrives before Richard returns, and Sophia proceeds to take instructions and provide legal advice. Mr. Harrison wants to establish a business exporting luxury watches and has various contacts to start immediately. He seeks advice on different business structures. Sophia advises that if Mr. Harrison starts as a private company, it can commence trading as soon as Companies House issues the certificate of incorporation. She also states that if the company appoints a company secretary, this individual cannot be the sole director. Furthermore, she explains that a private limited company can dispense with the need to hold meetings. Finally, she mentions that if the private limited company becomes a public limited company, it would be required to appoint a company secretary, who cannot also be a director. Upon reviewing her notes, Richard realises Sophia made an error.


On which of the following points was Sophia wrong?

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Sophia's error lies in her statement that a company secretary of a public limited company (Plc) cannot also be a director. There is no legal impediment preventing a director of a public company from also holding the position of company secretary. The other points Sophia mentioned are accurate: a public company must have a company secretary, a private company can commence business once the certificate of incorporation is issued, a private company can dispense with the need to hold meetings if provided for in the articles, and a company secretary of a private company can also be a sole director. 


Key Point: Understanding the roles and legal requirements of company officers, such as directors and company secretaries, is crucial for ensuring compliance with corporate governance regulations. This knowledge helps maintain proper organisational structure and operational efficiency within a company.

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