State the duties of an Auditor of a company ANSWER Duties of an auditor • To acquaint himself with his duties under the Companies Act and the Articles of Association of the Company who books he is called upon to Open …
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In relation to the provisions of the Companies Act of the Laws of Kenya, outline general provisions relating to meeting and votes
In relation to the provisions of the Companies Act of the Laws of Kenya, outline general provisions relating to meeting and votes ANSWER The Companies Act, recognises the following meetings : • Statutory Meeting. • Annual General Meeting. • Extra Open …
It is a fundamental principle of company law that the share capital of a company must be maintained. Discuss the legal consequences of this principle
It is a fundamental principle of company law that the share capital of a company must be maintained. Discuss the legal consequences of this principle ANSWER The principle has the following consequences: • A company cannot purchase its own shares. Open …
Njoroge, a member of Tusonge Company Ltd., inspected the register of members of the company and noted that his name had been omitted therein. Advise Njoroge on how he should proceed to have his name entered in the register
Njoroge, a member of Tusonge Company Ltd., inspected the register of members of the company and noted that his name had been omitted therein. Advise Njoroge on how he should proceed to have his name entered in the register ANSWER Open …
Outline the contents of a register of members of a company
Outline the contents of a register of members of a company ANSWER Contents of the Register of Members • Name and address of every shareholder. • Number of shares or stocks held. • Date of entry of the name. • Open …
Explain two terms implied in a contract of sale of shares between a seller and purchaser
Explain two terms implied in a contract of sale of shares between a seller and purchaser ANSWER Terms implied in a contract of sale of shares between a seller and purchaser. • That the buyer will pay the price of Open …
Explain five circumstances when shares may be issued at a discount
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 by the company. • One year must have elapsed from the date Open …
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 Open …
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 Open …
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 by 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 by Janet and Jackson Onyango on: a) What are the Memorandum and Articles of Association Open …