Explain how the Capital Authority can ensure: (i) Faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country (ii) Development of other stock exchanges in Kenya or in your country. ANSWER i) 1. Establishes Rules Open …
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What economic advantages are created by the existence of: (i) Primary markets (ii) Secondary markets (iii) Portfolio management firms
What economic advantages are created by the existence of: (i) Primary markets. (ii) Secondary markets (iii) Portfolio management firms. ANSWER i) Economic advantages are created by the existence of Primary Market • Raising Capital Business • mobilizing savings • Government Open …
Explain the classes of persons who may petition the court for the compulsory winding up of a company
Explain the classes of persons who may petition the court for the compulsory winding up of a company ANSWER Under the Companies Act a petition for the compulsory winding up of a company may be presented to the court by Open …
In a company with a share capital: i) What is the members right to appoint a proxy ii) What are the rights of the proxy so appointed?
In a company with a share capital: i) What is the members right to appoint a proxy ii) What are the rights of the proxy so appointed? ANSWER i) Members right to appoint a proxy • At common law a Open …
Outline the various matters that require to be sanctioned by members through a special resolution
Outline the various matters that require to be sanctioned by members through a special resolution ANSWER Various matters that require to be sanctioned by members through a special resolution • Voluntary change of name • Alteration of the objects clause Open …
State what is meant by underwriting commission and distinguish it from brokerage
State what is meant by underwriting commission and distinguish it from brokerage ANSWER Underwriting Commission This is the amount or sum paid by the company to a person who agrees to underwrite the company’s shares i.e. take up all the Open …
State the circumstances under which a company would be required to maintain an index of the register of members
State the circumstances under which a company would be required to maintain an index of the register of members ANSWER Under the provisions of the Companies Act every company with more than fifty members must have an index of the Open …
Kazi Bure borrowed Shs.50,000 from Tumaini Bank and deposited his XYZ Supermarket Ltd,s share certificate with a blank transfer as a security. Subsequently he bought goods from the supermarket on credit. The goods were worth Shs.15,000. The articles of association of XYZ Supermarket Ltd claimed a first and paramount lien on its members shares on debts due to the supermarket. However, before the supermarket lien arose the bank gave the supermarket notice of Kazi Bure’s share certificate having been lodged with the bank as a security for the loan. Kazi Bure is unable to pay for the goods he obtained from the supermarket and has also defaulted on the loan. XYZ Supermarket Ltd wants to exercise its lien and the bank wants to exercise its equitable right to have the shares transferred to into its name. In this situation discuss the rights of i) The Bank ii) XYZ Supermarket Ltd
Kazi Bure borrowed Shs.50,000 from Tumaini Bank and deposited his XYZ Supermarket Ltd,s share certificate with a blank transfer as a security. Subsequently he bought goods from the supermarket on credit. The goods were worth Shs.15,000. The articles of association Open …
“The capital of may no doubt be diminished by the expenditure upon and reasonably incidental to all the objects specified. A part of it may be lost in carrying on the business operations authorized. Of this, all persons trusting the company are aware and take the risk. But creditors have the right to rely and were intended by the legislature to have the right to rely on the capital remaining undistributed by any expenditure outside these limits or by the return of nay of it to the shareholders”. Per Lord Herchell L.J. in Trevor v Whitworth (1837) 12 App. Cap 409 at 415. Discuss this statement outlining the circumstances and conditions under which companies may reduce their capital.
“The capital of may no doubt be diminished by the expenditure upon and reasonably incidental to all the objects specified. A part of it may be lost in carrying on the business operations authorized. Of this, all persons trusting the Open …
Discuss the doctrine of ultra vires and state the exceptions to the doctrine
Discuss the doctrine of ultra vires and state the exceptions to the doctrine ANSWER Doctrine of ultra vires and state the exceptions to the doctrine Ultra Vires literally means beyond the powers. This is a rule of capacity of registered Open …