Buisness Finance

Question 1

Regarding equity finance, if the full amount is paif at the allotment of shares, then the shares are described as being …

Answer 1

fully paid up

Question 2

If shares are partly paid up, what does this mean if a company then goes into liquidation?

Answer 2

This means that the shareholder will be obliged to contribute the outstanding amount paid

Question 3

Regarding allotment of shares, if a company was incorporated before 1 October 2009, then what must you check before alloting?

Answer 3

That the articles have been updated, if they havent been then pass ordinary resolution

Question 4

After Oct 2009 - private companies with 1 class of share

Answer 4

board resolution

Question 5

After Oct 2009 - private companies with more than one class of share AND public companies.

Answer 5

ordinary resolution
File within 1 month Register within 2

Question 6

What should this ordinary resolution for ‘ private companies with more than one class of share AND public companies’ include

Answer 6

• No of shares
• 5 year expiry date

Question 7

How long should the offer of pre emption rights (offering existing sharehlders the same percentage shares) be open for

Answer 7

14 days

Question 8

If you are a private company with class of shares how to dissaply preemption rights:

Answer 8

Special resolution

Question 9

If you are a private company with more than one class of shares/ public company how to dissaply preemption rights:

Answer 9

Special resolution
If specific allotment include a written statement from the directors as to the amount of shares, the justification and reasons
15 days

Question 10

Where do shares go on the death of a shareholder?

Answer 10

To their PR

Question 11

Where do shares go on the bankruptcy of a shareholder?

Answer 11

To the trustee in banrkruptcy

Question 12

If alloting new shares is in consideration of a non cash asset, then what do not need to be dissaplied

Answer 12

pre emption rights