A company may issue redeemable preference shares pursuant to the following conditions:
- The issue must be authorized by the articles.
- The company?s capital must be dividend into different classes of shares.
- The issue must be disclosed in the company?s prospectus or statement in lieu.
- The registrar must be notified of the issue.
A company may redeem any redeemable preference shares pursuant to the following conditions:
- The redemption must be authorized by the articles.
- The shares must be fully paid.
-The share must be redeemed profit or proceeds of a special issue for that purpose.
- Any premium payable must be provided out of the profit of the company or the share premium account. - If the shares are redeemed otherwise than out of the proceeds of a special issue, the capital redemption reserve fund must be created.
- The registrar must be notified of the redemption within 30 days thereof.
marto answered the question on February 6, 2019 at 06:34
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Y Ltd whose articles are similar to Table A, publish a weekly magazine. In one issue an article is critical of the policies of the...
(Solved)
Y Ltd whose articles are similar to Table A, publish a weekly magazine. In one issue an article is critical of the policies of the city commission. A number of Commissioners who are also members of the company requisition a general meeting and secure the passing of an ordinary resolution ordering the company to publish in the next issue a withdrawal of the criticism. The directors of the company are adamant.
The angry commissioners approach you for the purpose of filing an action to compel the directors to publish a withdrawal.
Advise them.
Date posted:
February 6, 2019
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Answers (1)
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To what extent does the doctrine of constructive notice operate negatively?
(Solved)
To what extent does the doctrine of constructive notice operate negatively?
Date posted:
February 6, 2019
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State the powers of the inspection appointed to investigate the affairs of the company
(Solved)
State the powers of the inspection appointed to investigate the affairs of the company
Date posted:
February 6, 2019
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Answers (1)
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Detail the statutory provisions governing the investigation into the affairs of a company
by the registrar.
(Solved)
Detail the statutory provisions governing the investigation into the affairs of a company
by the registrar.
Date posted:
February 6, 2019
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Answers (1)
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State the legal consequences of a winding up order made against a company.
(Solved)
State the legal consequences of a winding up order made against a company.
Date posted:
February 6, 2019
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Answers (1)
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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.
(Solved)
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Date posted:
February 6, 2019
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Outline the legal rules that govern the appointment of an Administrative Receiver by a holder of a floating charge.
(Solved)
Outline the legal rules that govern the appointment of an Administrative Receiver by a holder of a floating charge.
Date posted:
February 6, 2019
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Answers (1)
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b) The directors of Alumasi Co. Ltd borrowed Shs.20 million from Maendeleo Bank. The Bank was informed that the money was intended to...
(Solved)
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.
Date posted:
February 6, 2019
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Answers (1)
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Distinguish between a Fixed Charge and a Floating Charge
(Solved)
Distinguish between a Fixed Charge and a Floating Charge
Date posted:
February 6, 2019
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Answers (1)
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Describe the duties of an Auditor as set out under the Companies Act.
(Solved)
Describe the duties of an Auditor as set out under the Companies Act.
Date posted:
February 5, 2019
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Answers (1)
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Highlight the requirements to be met before a notice of meeting served on members can be held to be valid.
(Solved)
Highlight the requirements to be met before a notice of meeting served on members can be held to be valid.
Date posted:
February 5, 2019
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Answers (1)
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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....
(Solved)
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
Date posted:
February 5, 2019
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Answers (1)
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Define the term "prospectus" and explain the circumstances under which a company may issue a prospectus
(Solved)
Define the term "prospectus" and explain the circumstances under which a company may issue a prospectus.
Date posted:
February 5, 2019
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Answers (1)
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Explain the Statutory and Common Law Rules that govern raising and maintenance of share capital of a company.
(Solved)
Explain the Statutory and Common Law Rules that govern raising and maintenance of share capital of a company.
Date posted:
February 5, 2019
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Answers (1)
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Wafula, one of the Directors of Hopeful Co. Ltd is unsure of his duty of care and skill as a director of the company....
(Solved)
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.
Date posted:
February 5, 2019
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Answers (1)
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Hopeful, a private limited company has adopted Table A as its Articles of Association. The company now, wishes to alter the Articles of Association.
...
(Solved)
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.
Date posted:
February 5, 2019
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Answers (1)
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In relation to company law describe the common law duties of a Promoter.
(Solved)
In relation to company law describe the common law duties of a Promoter.
Date posted:
February 5, 2019
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Answers (1)
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In relation to company law,discuss the rules that govern pre-incorporation contracts.
(Solved)
In relation to company law,discuss the rules that govern pre-incorporation contracts.
Date posted:
February 5, 2019
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Answers (1)
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In relation to company law:
a) Explain the meaning of the term “Promoter”.
(Solved)
In relation to company law:
a) Explain the meaning of the term “Promoter”.
Date posted:
February 5, 2019
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Answers (1)