What courses are open to a secured creditor in liquidation? ANSWER Course of action open to a secured creditor in liquidation • Value the security and prove the balance, if any. • Sell the security and prove the balance, if Open …
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How does a creditor demonstrate that the company is unable to pay its debts?
How does a creditor demonstrate that the company is unable to pay its debts? ANSWER How the creditor can prove insolvency: • That a debt of KSh.1,000 or more remain unpaid three weeks after demand • Execution or other process Open …
What are the different types of Liquidation and who may commence proceedings?
What are the different types of Liquidation and who may commence proceedings? ANSWER Types of winding-up i) Compulsory winding up or winding up by the court. ii) Winding up subject to the supervision of the court. iii) Voluntary winding up. Open …
Explain the remedies available to an aggrieved debenture holder
Green Bank gave a loan of Sh.3,0000,000 to Maendeleo Company Ltd. The bank took a floating charge over all the company’s movable and immovable property. The company has defaulted on repayment of the loan. However, the administrative receiver appointed by the bank has noticed that the chattels of the company were not registered and Ujenzi Company which is Maendeleo Company’s creditors are claiming the chattels. Advise the Official Administrative Receiver of his rights over the chattels
Green Bank gave a loan of Sh.3,0000,000 to Maendeleo Company Ltd. The bank took a floating charge over all the company’s movable and immovable property. The company has defaulted on repayment of the loan. However, the administrative receiver appointed by Open …
Last six types of company charges that require registration as outlined in the Companies Act of the Laws of Kenya
Last six types of company charges that require registration as outlined in the Companies Act of the Laws of Kenya ANSWER Circumstances in which a company may issue bonus shares: • There must be authority in the articles. • It Open …
Last six types of company charges that require registration as outlined in the Companies Act of the Laws of Kenya
Last six types of company charges that require registration as outlined in the Companies Act of the Laws of Kenya ANSWER Circumstances in which a company may issue bonus shares: • There must be authority in the articles. • It Open …
Explain the circumstances under which a company may issue bonus shares
Explain the circumstances under which a company may issue bonus shares ANSWER Statutory Limitations • A director cannot guarantee a loan. • In a public company a director outside the age limit for appointment is not qualified for appointment as Open …
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 limitations.
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 Open …
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 Open …