This question requires candidates to explain the rules relating to the lawful distribution of company dividends and further requires the candidates to focus on the different rules that apply to public and private companies. Although divided into three parts, candidates may provide a global answer.

8–10 
marks A thorough understanding of the law relating to dividends as it applies to both public and private companies. Cases may well be cited and will be credited.

5–7 marks 
A clear understanding of the general law, but perhaps lacking in detail or unbalanced in only dealing with one of the types of company.

2–4 marks 
Some, but limited, understanding of the law.

0–1 
mark Little or no knowledge of the law.