i. The company is free to deal with the assets charged as if they had not been charged.
ii. Enables companies without fixed assets to borrow.
iii. It enables the company to charge property which otherwise would not have been
charged since such property cannot be subject to a fixed charge.
iv. Enhances the borrowing capacity of a company of floating charges.
Kavungya answered the question on April 15, 2021 at 19:52
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What chapter number of the laws of Kenya is the Cooperatives Societies Act?
(Solved)
What chapter number of the laws of Kenya is the Cooperatives Societies Act?
Date posted:
April 15, 2021
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What is the maximum number of persons in a sole trader?
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What is the maximum number of persons in a sole trader?
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April 15, 2021
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What are the two fundamental principles of company law?
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What are the two fundamental principles of company law?
Date posted:
April 15, 2021
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Dissolution is the final stage of liquidation. After a company's affairs are "wound-up," a liquidator calls a final meeting of the members and/or creditors.Explain how...
(Solved)
Dissolution is the final stage of liquidation. After a company's affairs are "wound-up," a liquidator calls a final meeting of the members and/or creditors.Explain how winding up and dissolution takes place.
Date posted:
April 15, 2019
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Answers (1)
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Explain the applicable methods used in issuing of shares to the public.
(Solved)
Explain the applicable methods used in issuing of shares to the public.
Date posted:
April 15, 2019
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Answers (1)
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Explain the difference between underwriters and brokers.
(Solved)
Explain the difference between underwriters and brokers.
Date posted:
April 15, 2019
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Answers (1)
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Define and explain the functions of promoters.
(Solved)
Define and explain the functions of promoters.
Date posted:
April 15, 2019
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Answers (1)
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State the main features of a prospectus
(Solved)
State the main features of a prospectus.
Date posted:
April 15, 2019
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Answers (1)
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Explain the meaning and importance of articles of association of company.
(Solved)
Explain the meaning and importance of articles of association of company.
Date posted:
April 15, 2019
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Answers (1)
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Explain the meaning and significance of the memorandum of association.
(Solved)
Explain the meaning and significance of the memorandum of association.
Date posted:
April 15, 2019
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Answers (1)
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Explain consequences of registration of a company.
(Solved)
Explain consequences of registration of a company.
Date posted:
April 15, 2019
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Answers (1)
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Explain how a limited company is registered in Kenya
(Solved)
Explain how a limited company is registered in Kenya
Date posted:
April 15, 2019
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Answers (1)
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Explain meaning, functions and the differences between holding company and subsidiary company.
(Solved)
Explain meaning, functions and the differences between holding company and subsidiary company.
Date posted:
April 15, 2019
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Answers (1)
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What is an unlimited company?
(Solved)
What is an unlimited company?
Date posted:
April 15, 2019
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Answers (1)
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What are companies limited by guarantee?
(Solved)
What are companies limited by guarantee?
Date posted:
April 15, 2019
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Answers (1)
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What are companies limited by shares?
(Solved)
What are companies limited by shares?
Date posted:
April 15, 2019
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Answers (1)
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What is meant by the term Declaration of Compliance?
(Solved)
What is meant by the term Declaration of Compliance?
Date posted:
April 15, 2019
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Explain how the Capital Authority can ensure:
(i) faster growth and development of the Nairobi Stock Exchange...
(Solved)
Explain how the Capital Authority can ensure:
(i) faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country.
(ii) development of other stock exchanges in Kenya or in your country
Date posted:
February 7, 2019
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Answers (1)
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What economic advantages are created by the existence of:
(i) Primary markets.
(ii) Secondary markets
(iii) Portfolio management firms.
(Solved)
What economic advantages are created by the existence of:
(i) Primary markets.
(ii) Secondary markets
(iii) Portfolio management firms.
Date posted:
February 7, 2019
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Answers (1)
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Mwinzi, a holder of shares in Hewa Airways Company Limited deposited his share certificate with a broker, Otieno. Otieno forged Mwinzi's signature on the share...
(Solved)
Mwinzi, a holder of shares in Hewa Airways Company Limited deposited his share certificate with a broker, Otieno. Otieno forged Mwinzi's signature on the share certificate and transferred the shares to Kuria. When the share certificate and the transfer document were presented to the company for registration, the secretary wrote to Mwinzi advising him of the transfer. Mwinzi did not reply to this letter and Kuria was registered as the new shareholder. Kuria then transferred the shares to Wafula who was registered as the shareholder and a new certificate was issued.
Explain the effect of the forgery.
Date posted:
February 7, 2019
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Answers (1)