| Front | Who do directors owe duties to? |
| Back | Traditionally to the company as a whole, but mostly to the shareholders |
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| Front | What enforcements are there for not following regulation? |
| Back | Allotment of secuirty when there's no registered prospectus is voidAny subscriptions received must be repaid to the subscribersThe issuer and directors are jointly and severally liable for their repayment |
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| Front | What are the duties of an auditor? |
| Back | Make a report to the SH on the financial statementsMust include following information:- Scope and limitations of the audit- Existence of any relationship which the auditor has with the company- Whether the auditor has obtained all the information and explanation required- Whether the proper accounting records have been kept- Whether the financial statements comply with the FRA for exempt companiesAdditional information must be reported on:- Whether the financial statements comply with generally accepted accounting practice- Whether the statements give a true and fair view of the matters to which they relateDuty of careLiability may be to the company in contract and third parties in tort |
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