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 …
Category: CPA Company law revision
CPA Company law revision
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 …
Outline the rules that govern pre-incorporation contracts. Cite relevant case-law to support your answer.
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 …
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 …