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 by an inspector appointed by the court are defrayed by the Open …
Author: admin
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 Open …
Detail the statutory provisions governing the investigation into the affairs of a company by the registrar
Detail the statutory provisions governing the investigation into the affairs of a company by the registrar ANSWER The registrar of companies is empowered to investigate the affairs of a company by self or by an inspector in certain circumstances. The Open …
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 by the company crystallize and become fixed. • The company ceases to carry on business except such as may be required for Open …
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 by the court, if the court Open …
Outline the legal rules that govern the appointment of an Administrative Receiver by a holder of a floating charge
Outline the legal rules that govern the appointment of an Administrative Receiver by 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 Open …
The directors of Alumasi Co. Ltd borrowed Shs.20 million from Maendeleo Bank. The Bank was informed that the money was intended to be used to expand the company‟s horticultural business. The bank however, did not ask for the company‟s Memorandum of Association and lent the money. The money was spent for purposes not intended. These facts have come to light and Maendeleo Bank seeks your advice on whether the bank can successfully recover the money. Advise the bank.
The directors of Alumasi Co. Ltd borrowed Shs.20 million from Maendeleo Bank. The Bank was informed that the money was intended to be used to expand the company‟s horticultural business. The bank however, did not ask for the company‟s Memorandum Open …
Distinguish a Fixed Charge from a Floating Charge
Distinguish a Fixed Charge from a Floating Charge ANSWER Fixed Charge This is a legal or specific charge. It is a charge securing a debenture on a fixed asset. In Illingworth v Houldsworthit was observed that a fixed charge is Open …
The rule in Foss v Harbottle establishes the principle that where a wrong is done to the company, the proper plaintiff is the company itself. However, where the wrong is done by the company directors, it may be impossible for the company to sue. In such a case, a derivate action may be the only option. a) Explain what is meant by “derivative action”. b) Describe the conditions that must be satisfied before a derivative suit can be instituted
The rule in Foss v Harbottle establishes the principle that where a wrong is done to the company, the proper plaintiff is the company itself. However, where the wrong is done by the company directors, it may be impossible for Open …
Define the term „prospectus‟ and explain the circumstances under which a company may issue a prospectus
Define the term „prospectus‟ and explain the circumstances under which a company may issue a prospectus. ANSWER Under the Companies Act “prospectus” means: • “Any prospectus, notice, circular advertisement or other invitation offering to the public for subscription or purchase Open …