Company capital and finance

Question 1

Are companies allowed to issued shares at a discount?

Answer 1

NO

Question 2

In a public company how are shares allotted paid?

Answer 2

at least one-quarter of the nominal value together with all of the share premium.

Question 3

What is a fixed charge?

Answer 3

borrowing that is secured against a substantial and identifiable physical asset such as land, property, vehicles, plant and machinery. lender has full control over the asset.

Question 4

What is a floating charge?

Answer 4

is a security interest over a non-constant group of assets. non current assets

Question 5

What is Crystallization?

Answer 5

When floating charges are converted into fixed charges

Question 6

Does a floating charge need to be registered?

Answer 6

yes all charges need to be registered to be valid

Question 7

What is the proper purpose of issuing of shares?

Answer 7

Raise finance for the interests of the company

Question 8

What is the definition of issued share captial?

Answer 8

the type, class, number and amount of the shares held by the shareholder