CIMAPRA17-BA4-1 Exam - Topic 2 Question 112 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 112
Topic #: 2

Paul has been held personally liable to contribute to the assets of P Ltd as a result of his "fraudulent trading" under Section 213 of the Insolvency Act 1986. The court is about to disqualify Paul from acting as a director. What is the maximum period for which he may be disqualified?

ANo maximum.

B5 years.

C10 years.

D15 years.

Show Suggested Answer

Suggested Answer: D

by Aliza at Jun 15, 2025, 05:07 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA4-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Skye

2 months ago

Seems harsh, but I guess it's necessary for fraud.

upvoted 0 times

...

Royal

3 months ago

I thought it was only 10 years!

upvoted 0 times

...

Arthur

3 months ago

Definitely 15 years, no doubt about it.

upvoted 0 times

...

Fernanda

3 months ago

Wait, can they really disqualify him for that long?

upvoted 0 times

...

Louvenia

3 months ago

Maximum disqualification is 15 years.

upvoted 0 times

...

Willard

4 months ago

I believe it's 15 years for fraudulent trading, but I might be mixing it up with another type of disqualification.

upvoted 0 times

...

Hoa

4 months ago

I vaguely recall that there might not be a maximum for certain serious offenses, but I can't remember if that applies here.

upvoted 0 times

...

Reyes

4 months ago

I practiced a similar question where the disqualification was 5 years, but I feel like fraudulent trading might lead to a longer period.

upvoted 0 times

...

Ezekiel

4 months ago

I think the maximum disqualification period is 10 years, but I'm not entirely sure. I remember something about it being related to serious misconduct.

upvoted 0 times

...

Minna

4 months ago

I'm pretty confident I know the answer to this. The maximum disqualification period for fraudulent trading is 15 years, so I'll go with option D.

upvoted 0 times

...

Eulah

5 months ago

Hmm, I'm a bit unsure about the specifics here. I'll need to carefully read through the question and the Act to determine the correct maximum disqualification period.

upvoted 0 times

...

Queenie

5 months ago

Okay, I think I've got this. The key is understanding the maximum disqualification period for fraudulent trading under Section 213. Let me review that section quickly.

upvoted 0 times

...

Jolene

5 months ago

This question seems straightforward, but I want to double-check the details in the Insolvency Act to make sure I have the right information.

upvoted 0 times

...

Lettie

8 months ago

I heard Paul was cooking the books to fund his secret llama farm. No wonder they're throwing the book at him! Option C, 10 years, seems fair enough.

upvoted 0 times

Gearldine

8 months ago

Option C, 10 years, does seem like a fair punishment.

upvoted 0 times

...

Virgina

8 months ago

Yeah, he's in big trouble for sure.

upvoted 0 times

...

Craig

8 months ago

I think Paul really messed up this time.

upvoted 0 times

...

Leontine

8 months ago

I'm not sure, but I think the answer might be D) 15 years. The court can impose a longer disqualification period for severe cases.

upvoted 0 times

...

Naomi

8 months ago

I agree with Glen, because fraudulent trading is a serious offense that warrants a longer disqualification period.

upvoted 0 times

...

Nobuko

8 months ago

Fraudulent trading, huh? Sounds like someone's been cooking the books. I'm going to have to go with option A - no maximum disqualification. Gotta hit 'em where it hurts!

upvoted 0 times

...