(ii) Describe the claim of each of the four identified stakeholders. (4 marks)

In relation to company law, explain:

(a) the limitations on the use of company names; (4 marks)

(b) the tort of ‘passing off’; (4 marks)

(c) the role of the company names adjudicators under the Companies Act 2006. (2 marks)

(b) Explain the major benefits of pursuing a policy of internal development. (4 marks)

(c) (i) Compute Gloria’s capital gains tax liability for 2006/07 ignoring any claims or elections available to

reduce the liability. (3 marks)

(b) Chatam, a limited liability company, is a long-standing client. One of its subsidiaries, Ayora, has made losses

for several years. At your firm’s request, Chatam’s management has made a written representation that goodwill

arising on the acquisition of Ayora is not impaired. Your firm’s auditor’s report on the consolidated financial

statements of Chatam for the year ended 31 March 2005 is unmodified. Your firm’s auditor’s report on the

financial statements of Ayora is similarly unmodified. Chatam’s Chief Executive, Charles Barrington, is due to

retire in 2006 when his share options mature. (6 marks)

Required:

Comment on the ethical and other professional issues raised by each of the above matters and their implications,

if any, for the continuation of each assignment.

NOTE: The mark allocation is shown against each of the three issues.

(c) Discuss the factors that might influence whether the initial bid is likely to be accepted by the shareholders of Wragger plc.

(iii) whether you agree or not with the statement of the production director. (3 marks)

(b) What styles of managing change would you recommend John use to bring about the desired change?

(8 marks)

(ii) vehicles. (3 marks)