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Describe the circumstance under which a company may be wound up on the ground that it is "just and equitable" to do so.
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Next: Outline the legal rules that govern the appointment of an Administrative Receiver by a holder of a floating charge.
Previous: State the legal consequences of a winding up order made against a company.
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Outline the legal rules that govern the appointment of an Administrative Receiver by a holder of a floating charge.
Date posted: February 6, 2019 . Answers (1)
b) 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.
Distinguish between a Fixed Charge and a Floating Charge
Describe the duties of an Auditor as set out under the Companies Act.
Date posted: February 5, 2019 . Answers (1)
Highlight the requirements to be met before a notice of meeting served on members can be held to be valid.
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
Define the term "prospectus" and explain the circumstances under which a company may issue a prospectus.
Explain the Statutory and Common Law Rules that govern raising and maintenance of share capital of a company.
Wafula, one of the Directors of Hopeful Co. Ltd is unsure of his duty of care and skill as a director of the company. He seeks your advice on this. Advise him.
Hopeful, a private limited company has adopted Table A as its Articles of Association. The company now, wishes to alter the Articles of Association. Outline the procedure to be followed to effect the change.
In relation to company law describe the common law duties of a Promoter.
In relation to company law,discuss the rules that govern pre-incorporation contracts.
In relation to company law: a) Explain the meaning of the term “Promoter”.