Finance Options

Question 1

What authority do the directors need to issue a final dividend?

Answer 1

An OR of the shareholders.

Question 2

What authority do the directors need to issue an interim dividend?

Answer 2

The MA give director power to decide to pay these if the company has sufficient distributable profits.

Question 3

When is stamp duty due on a transfer of shares?

Answer 3

Stamp duty will be due at a rate of 0.5% (subject to a £5 minimum) where the sale price exceeds £1000.

Question 4

What is the difference between a loan agreement and a debenture?

Answer 4

A loan agreement sets out the terms of the loan and the debenture sets out the details of the security.

Question 5

Does a charge give the creditor an interest in the property?

Answer 5

Yes - equitable proprietary right.

Question 6

When must a charge be registered with Companies House?

Answer 6

Within 21 days beginning with the day after the day on which the charge is created.

Question 7

What must be provided to CH to register a charge?

Answer 7

1. Form MR01 (Statement of Particulars).
2. A certified copy of the charge (a debenture).
3. The relevant fee.

Question 8

What are the consequences of a charge not being registered within 21 days?

Answer 8

The charge is void against a liquidator, administrator and any creditor. The debt becomes immediately payable.