Explain the reason why a third part dealing with the company may concern himself with the doctrine of ultra vires The Companies Act of the Laws of Kenya imposes certain statutory limitations and obligations on directors. List four of such Read More …
Author: Admin
Describe the categories of persons who do not qualify to be appointed auditors of a company
Describe the categories of persons who do not qualify to be appointed auditors of a company ANSWER Categories of persons disqualified to be auditors: • A body corporate. • An officer or servant of the company. • A person who Read More …
State the duties of an Auditor of a company
State the duties of an Auditor of a company ANSWER Duties of an auditor • To acquaint himself with his duties under the Companies Act and the Articles of Association of the Company who books he is called upon to Read More …
In relation to the provisions of the Companies Act of the Laws of Kenya, outline general provisions relating to meeting and votes
In relation to the provisions of the Companies Act of the Laws of Kenya, outline general provisions relating to meeting and votes ANSWER The Companies Act, recognises the following meetings : • Statutory Meeting. • Annual General Meeting. • Extra Read More …
It is a fundamental principle of company law that the share capital of a company must be maintained. Discuss the legal consequences of this principle
It is a fundamental principle of company law that the share capital of a company must be maintained. Discuss the legal consequences of this principle ANSWER The principle has the following consequences: • A company cannot purchase its own shares. Read More …
Njoroge, a member of Tusonge Company Ltd., inspected the register of members of the company and noted that his name had been omitted therein. Advise Njoroge on how he should proceed to have his name entered in the register
Njoroge, a member of Tusonge Company Ltd., inspected the register of members of the company and noted that his name had been omitted therein. Advise Njoroge on how he should proceed to have his name entered in the register ANSWER Read More …
Outline the contents of a register of members of a company
Outline the contents of a register of members of a company ANSWER Contents of the Register of Members • Name and address of every shareholder. • Number of shares or stocks held. • Date of entry of the name. • Read More …
Explain two terms implied in a contract of sale of shares between a seller and purchaser
Explain two terms implied in a contract of sale of shares between a seller and purchaser ANSWER Terms implied in a contract of sale of shares between a seller and purchaser. • That the buyer will pay the price of Read More …
Explain five circumstances when shares may be issued at a discount
Explain five circumstances when shares may be issued at a discount ANSWER Issue of shares at a discount • The shares must belong to a class already issued the company. • One year must have elapsed from the date Read More …
Kioko, an Under Secretary in the Ministry of Viwandani was entrusted with the responsibility of selling the Ministry‟s boarded motor vehicles. He invited bids frommembers of the public to buy two lorries. He also bid, through a nominee. Mwangangi, his own brother. Subsequently, he sold the lorries to Mwangangi, at Sh.80,000 each. Kioko then formed Kima Company Ltd and instructed Mwangangi to sell the lorries to the company at Sh.350,000 each. A prospectus as issued to the public to subscribe for shares to Kima Company Ltd. The prospectus gave Mwangangi as the vendor of the lorries and did not disclose the profit Kioko was making. Musembi, a shareholder of the company has learnt of the sale of the lorries to the company and the profit Kioko made and seeks your advice on the company’s rights in respect of the same. Advise Musembi.
Kioko, an Under Secretary in the Ministry of Viwandani was entrusted with the responsibility of selling the Ministry‟s boarded motor vehicles. He invited bids frommembers of the public to buy two lorries. He also bid, through a nominee. Mwangangi, his Read More …