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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 by passing Open …

In relation to corporate insolvency, a) i) Explain what is meant by a contributory. ii) Distinguish between fraudulent and wrongful trading. Against whom may proceedings by brought for breaches of provisions against fraudulent trading and wrongful trading?

In relation to corporate insolvency, a) i) Explain what is meant by a contributory. ii) Distinguish between fraudulent and wrongful trading. Against whom may proceedings by brought for breaches of provisions against fraudulent trading and wrongful trading? ANSWER i) Under Open …

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 by 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 Open …

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 by 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 Open …

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 Open …