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(a)
-Pesa Limited cannot raise funds to purchase Anna?s shares as if in contrary to the rule in?
- Trevor V. Whitworth.
- The rule in Trevor V. Whitworth is emphatic that a company must not purchase its shares or finance their purchase. However, there are certain circumstances in which a company may purchase its share e.g. redemption of redeemable preference shares.
- Pesa Limited is free to redeem redeemable debentures out of reserves or the share premium account. The debenture must be redeemed in accordance with its provisions.
(b)
It is unlawful for a company to finance the purchase or subscription of its shares. In this case, the lending of money to Charles is unlawful and the purported guarantee by Pesa Ltd is unlawful as well. This case does not fall within the exceptions prescribed by the provisions prescribed by the proviso to section 56 of the Act in which a company may finance the purchase of its shares.
marto answered the question on February 6, 2019 at 10:47
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Triple H, Undertaker Austin and Flair are directors of Mieleka Ltd a company regulated by Table A. Fair is the managing director and undertaker is the chairperson of the company. Sometime ago the directors meeting as a board decided to:
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ii) Advance Shs.500,000 to Austin to cover his expenses on a worldwide (promotional tour on behalf of the company).
Booker T, the company secretary informs you that Stone Cold a shareholder claims that this transaction should have been approved by the members and that he intends to raise the matter during the next general meeting.
Required
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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b) Kazi Bure borrowed...(Solved)
a)State the circumstances under which a company would be required to maintain an index
of the register of members
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In this situation discuss the rights of
i) The Bank
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regarding their legal position as joint holders of the shares. Advice them
Date posted: February 6, 2019. Answers (1)
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Per Lord Herchell L.J. in Trevor v Whitworth (1837) 12 App. Cap 409 at 415.
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Date posted: February 6, 2019. Answers (1)
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Required:
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ii) What provisions for the protection of Shem are found in such contracts?
Date posted: February 6, 2019. Answers (1)