Outline the rules that govern pre-incorporation contracts. Cite relevant case-law to support your answer. ANSWER a) A pre-incorporation contract is a contract entered into before a company is incorporated. Rules governing pre-incorporation contracts • A pre-incorporation contract does not bind Read More …
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Janet and Jackson Onyango are forming a Limited Liability Company. They are seeking your legal advice on the issues listed below. Respond to the enquiries Janet and Jackson Onyango on: a) What are the Memorandum and Articles of Association and is there a difference between the two b) What details would you expect them to contain and what other information might you be able to give about these details?
Janet and Jackson Onyango are forming a Limited Liability Company. They are seeking your legal advice on the issues listed below. Respond to the enquiries Janet and Jackson Onyango on: a) What are the Memorandum and Articles of Association Read More …
Explain who is responsible for the expenses incurred while carrying out investigations into the company’s affairs
Explain who is responsible for the expenses incurred while carrying out investigations into the company’s affairs ANSWER Under the Companies Act, the expenses of and incidental to an investigation an inspector appointed the court are defrayed the Read More …
State the powers of the inspection appointed to investigate the affairs of the company
State the powers of the inspection appointed to investigate the affairs of the company. ANSWER • To investigate the holding or subsidiary company if the same is necessary of the investigation. • To administer oath. • To examine persons on Read More …
Detail the statutory provisions governing the investigation into the affairs of a company the registrar
Detail the statutory provisions governing the investigation into the affairs of a company the registrar ANSWER The registrar of companies is emto investigate the affairs of a company self or an inspector in certain circumstances. The Read More …
State the legal consequences of a winding up order made against a company
State the legal consequences of a winding up order made against a company. ANSWER All floating charges created the company crystallize and become fixed. • The company ceases to carry on business except such as may be required for Read More …
Describe the circumstance under which a company may be wound up on the ground that it is „just and equitable‟ to do so
Describe the circumstance under which a company may be wound up on the ground that it is „just and equitable‟ to do so. ANSWER Under the Companies Act, “a company may be wound up the court, if the court Read More …
Outline the legal rules that govern the appointment of an Administrative Receiver a holder of a floating charge
Outline the legal rules that govern the appointment of an Administrative Receiver a holder of a floating charge ANSWER i) Under the Companies Act, where a receiver or manager of the whole or substantially the whole of the property Read More …
The directors of Alumasi Co. Ltd borrowed Shs.20 million from Maendeleo Bank. The Bank was informed that the money was intended to be used to expand the company‟s horticultural business. The bank however, did not ask for the company‟s Memorandum of Association and lent the money. The money was spent for purposes not intended. These facts have come to light and Maendeleo Bank seeks your advice on whether the bank can successfully recover the money. Advise the bank.
The directors of Alumasi Co. Ltd borrowed Shs.20 million from Maendeleo Bank. The Bank was informed that the money was intended to be used to expand the company‟s horticultural business. The bank however, did not ask for the company‟s Memorandum Read More …
Distinguish a Fixed Charge from a Floating Charge
Distinguish a Fixed Charge from a Floating Charge ANSWER Fixed Charge This is a legal or specific charge. It is a charge securing a debenture on a fixed asset. In Illingworth v Houldsworthit was observed that a fixed charge is Read More …