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【Questions】

1 Which TWO of the following are circumstances when a court may decline to follow a precedent that would otherwise be binding?

A.Where the decision was taken by a higher court.

B.Where it is possible to distinguish the facts.

C.Where the previous statement was made obiter dicta.

D.Where the previous case had been made per incuriam.

2 A general meeting of Lump plc is needed because the directors wish to put a resolution to the members seeking a change to the articles of association. At least 15% of the members will not vote in favour of this resolution.

Which TWO of the following statements are true?

A.The notice must contain a proxy notice, indicating that a member may appoint someone to vote on their behalf.

B.The directors may call the meeting to be held tomorrow.

C.Notice must be sent to all members.

D.A notice should contain a brief outline of the resolution proposed.

3 Which of the following divisions of the High Court hears cases relating to bankruptcy?

A.Family Division

B.Chancery Division

C.Queen’s Bench Division

【Answers】

1 Where it is possible to distinguish the facts Where the previous case had been made per incuriam In the doctrine of judicial precedent decisions of higher courts will bind lower courts where the material facts are the same. The court does not have to follow a precedent if it can be declared per incuriam, ie that it has missed some important legal point.

2 Notice must be sent to all members The notice must contain a proxy notice, indicating that a member may appoint someone to vote on their behalf It is clear that the meeting will not be able to be held at short notice because too many shareholders are already indicating that they will vote against the resolution and so they are hardly likely to consent to the meeting going ahead early (this would require 95% of them to agree). The content of the notice convening the meeting is prescribed by the Companies Act 2006. All members must receive a copy of the notice and each one of is entitled to appoint a proxy to vote in their place if they cannot attend the meeting. Special resolutions require the text of the resolution to be included in the notice.

3 Chancery Division The Chancery Division hears cases on bankruptcy, insolvency and matters concerning company law.

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