-Under Section 219 (f) of the Companies Act, a company may be bound up by the court if the court is of the opinion that it is just an equitable that the company should be wound up.
- Courts of law have wound up companies on this ground in certain circumstances:
- Fraudulent or illegal purpose.
- Failure of substratum - Loss of confidence in management.
- The company is a 'bubble' or 'sham.'
- Oppression of the minority.
- Expulsion or exclusion from management.
- Deadlock in management and membership
marto answered the question on February 6, 2019 at 10:37
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(i)What is a special notice?
(ii) Give the circumstances under which a special notice would be required with respect to company meetings.
(Solved)
(i)What is a special notice?
(ii) Give the circumstances under which a special notice would be required with respect to company meetings.
Date posted:
February 6, 2019
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Answers (1)
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State the Rule in Sharp-vs-Dawes and explain the exceptions to this rule?
(Solved)
State the Rule in Sharp-vs-Dawes and explain the exceptions to this rule?
Date posted:
February 6, 2019
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Answers (1)
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What happens to a floating charge when it crystallizes?
(Solved)
What happens to a floating charge when it crystallizes?
Date posted:
February 6, 2019
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Answers (1)
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Discuss the rules relating to appointment and vacation of office of directors.
(Solved)
Discuss the rules relating to appointment and vacation of office of directors .
Date posted:
February 6, 2019
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Answers (1)
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a) James and Shem proposed to form a company by the name 'Micromine Limited'. On behalf of the proposed company, Shem entered into contracts to...
(Solved)
a) James and Shem proposed to form a company by the name 'Micromine Limited'. On behalf of the proposed company, Shem entered into contracts to purchase office furniture and stationery.
Required:
i) What are the company's rights and liabilities under such contracts after incorporation?
ii) What provisions for the protection of Shem are found in such contracts?
Date posted:
February 6, 2019
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Answers (1)
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Outline the documents that are normally kept at the registered office of a company.
(Solved)
Outline the documents that are normally kept at the registered office of a company.
Date posted:
February 6, 2019
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Answers (1)
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Distinguish between a corporation sole and a corporation aggregate.
(Solved)
Distinguish between a corporation sole and a corporation aggregate.
Date posted:
February 6, 2019
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Answers (1)
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Highlight the circumstances under which a person may cease to be a member of a
company.
(Solved)
Highlight the circumstances under which a person may cease to be a member of a
company.
Date posted:
February 6, 2019
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Answers (1)
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Birds Limited has three directors: Peacock, Sparrow and Vulture. Explain the legal implication of each of the following situations: a) Vultures son has recently...
(Solved)
Birds Limited has three directors: Peacock, Sparrow and Vulture. Explain the legal implication of each of the following situations:
a) Vulture's son has recently come of age and vulture wishes to appoint him a director of
the company.
b) The company is considering the purchase of a substantial quantity of goods from fly ltd., in which sparrow has a large shareholding through he is not a director peacock and vulture are unaware of sparrow's interest in fly ltd.
c) Because of adverse publicity about peacock's private life, vulture and sparrow wish to
remove him as a director, since he refuses to resign.
d) In view of the adverse publicity, vulture and sparrow decide to exclude peacock from participation in the company's affairs.
e) The directors are advised by wise & co., the company's auditors, that there is no possibility of the company trading at a profit in the foreseeable future and no reasonable prospect of its paying its debts
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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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)
Describe the circumstance under which a company may be wound up on the ground that it is "just and equitable" to do so.
Date posted:
February 6, 2019
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Answers (1)
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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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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)