In order to frustrate a threatened take-over bid, the directors of Kesho Ltd. issue to themselves and their nominees sufficient ordinary shares for cash so as to give themselves control of a majority of the shares which give the right Read More …
Author: Admin
Describe the various kinds of resolutions that may be passed at general meetings. State the difference between them and list matters that require such resolutions to be passed before they can have effect
Describe the various kinds of resolutions that may be passed at general meetings. State the difference between them and list matters that require such resolutions to be passed before they can have effect. ANSWER Company meetings make decisions passing Read More …
Highlight the powers of the court on hearing a petition
Highlight the powers of the court on hearing a petition. ANSWER On hearing a winding up petition the court may: • Dismiss it. • Adjourn the hearing conditionally or unconditionally. • Make an interim order. • Make such other or Read More …
In relation to corporate insolvency, a) i) Explain what is meant a contributory. ii) Distinguish between fraudulent and wrongful trading. Against whom may proceedings brought for breaches of provisions against fraudulent trading and wrongful trading?
In relation to corporate insolvency, a) i) Explain what is meant a contributory. ii) Distinguish between fraudulent and wrongful trading. Against whom may proceedings brought for breaches of provisions against fraudulent trading and wrongful trading? ANSWER i) Under Read More …
Highlight the circumstances under which a person may cease to be a member of a company
Highlight the circumstances under which a person may cease to be a member of a company ANSWER A person may cease to be a member of a company on the following circumstances: • Transfer of shares • Death • Bankruptcy Read More …
List four types of registers a company is required to keep and outline the contents of each register stating who can access the register
List four types of registers a company is required to keep and outline the contents of each register stating who can access the register ANSWER Types of Registers 1. REGISTER OF MEMBERS Every company must keep a register of members. Read More …
Joan has inherited one million shillings from the estate of her late mother. She has decided to invest it in a small private company of which Janet and Jeffrey, her old friends are directors. However, Joan is not sure whether to lend the money to the company secured a debenture containing a fixed and floating charge or through purchase of ordinary preference shares. Joan now seeks your advise on the following issues: a) What is the difference between ordinary and preference shares, and what rights accrue to the holders of each class shares? b) i) What is the return on ordinary and preference share capital? ii) What are the restrictions that may be imposed on her ability to transfer any shares she may purchase in the Company?
Joan has inherited one million shillings from the estate of her late mother. She has decided to invest it in a small private company of which Janet and Jeffrey, her old friends are directors. However, Joan is not sure whether Read More …
Birds Limited has three directors: Peacock, Sparrow and Vulture. Explain the legal implication of each of the following situations: a) Vulture’s son has recently come of age and vulture wishes to appoint him a director of the company b) The company is considering the purchase of a substantial quantity of goods from fly ltd., in which sparrow has a large shareholding through he is not a director peacock and vulture are unaware of sparrow’s interest in fly ltd. c) Because of adverse publicity about peacock’s private life, vulture and sparrow wish to remove him as a director, since he refuses to resign d) In view of the adverse publicity, vulture and sparrow decide to exclude peacock from participation in the company’s affairs e) The directors are advised wise & co., the company’s auditors, that there is no possibility of the company trading at a profit in the foreseeable future and no reasonable prospect of its paying its debts
Birds Limited has three directors: Peacock, Sparrow and Vulture. Explain the legal implication of each of the following situations: a) Vulture’s son has recently come of age and vulture wishes to appoint him a director of the company b) The Read More …
State and briefly discuss the conditions which must be fulfilled before a company can either issue or redeem shares which are stated to be redeemable
State and briefly discuss the conditions which must be fulfilled before a company can either issue or redeem shares which are stated to be redeemable ANSWER A company may issue redeemable preference shares pursuant to the following conditions: • The Read More …
State the requirements of the Companies Act which relate to the company giving financial assistance for purchase of its own shares. What are the consequences of non – compliance with these requirements?
State the requirements of the Companies Act which relate to the company giving financial assistance for purchase of its own shares. What are the consequences of non – compliance with these requirements? ANSWER It is generally unlawful for a company Read More …