Capital and Financing Flashcards
Do you have voting rights with preference shares?
No
Are dividends paid in a fixed amount with ordinary shares?
No
Do shareholders have to pay for bonus issues of shares?
No
Can shares in a rights issue be offfered at a discount?
Yes, at a discount to current market value
In order to allot shares, what type of resolution must be passed?
Ordinary resolution
Can a share premium account be used to issue bonus shares?
Yes
What resolution must be passed for a plc to reduce their capital?
Special resolution
What is classed as distributable profits?
Accumulated realised profits less the accumulated realised losses
Does a board need to have a general meeting to issue debentures?
No
Is a mortgage an example of a fixed or floating charge?
Fixed charge
When a company can no longer deal freely with their assets, what is this called?
Crystallisation
Does a debenture have voting rights?
No
Does the board need authority to issue debentures?
No
Is the interest on debentures paid before or after tax?
Before
What type of charge is on a class of assets, present and future?
Floating
