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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 2Question 41
    Easy1 markMultiple Choice
    Management, administration and the regulation of companiesSection ASyllabus FCorporate and Business Law

    ACCA · Question 41 · Management, administration and the regulation of companies

    Which of the following statements regarding the appointment of a company secretary is correct under the Companies Act 2006?

    Answer options:

    A.

    Both public and private companies must have a company secretary.

    B.

    Neither public nor private companies are required to have a company secretary.

    C.

    A private company must have a company secretary, but it is optional for a public company.

    D.

    A public company must have a company secretary, but it is optional for a private company.

    How to approach this question

    Recall the deregulation introduced for private companies in the Companies Act 2006.

    Full Answer

    D.A public company must have a company secretary, but it is optional for a private company.✓ Correct
    The Companies Act 2006 removed the mandatory requirement for private companies to have a company secretary (s.270), leaving it as an optional appointment. However, public companies (PLCs) are still legally required to appoint a suitably qualified company secretary (s.271).

    Common mistakes

    Believing that private companies are still forced to have a secretary (which was true under the old 1985 Act).
    Question 40All questionsQuestion 42

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