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a)Bearer debenture
-This is a debenture payable to the holder or bearer.
- It is a negotiable instrument transferable by mere delivery and free from equities.
- A bonafide transferee acquires a good title.
- Bearer can sue the company in his own name.
Registered debenture
This is a debenture issued to a registered holder i.e. registered by the company.?? ? It is payable to the registered person.
- The company has particulars of a specific person.
It is transferable by the execution of an instrument of transfer.
(b) Redeemable debentures
- These are debentures which are redeemable within a specified duration.
- The redemption must be effected in accordance with its provision i.e. payment of principal and interest.
Irredeemable debentures: These are debentures that are only redeemable in the event of winding up or some serious default by the company.
c)Debentures It is a document evidencing indebtedness which is secured or unsecured. This is acknowledgement of indebtedness it is evidenced that a company is indebted Edmunds V. Blaing Co. Debenture includes:
Debenture Stock:
- It is transferable in whole.
- This is a loan fund created by a company. It is divisible among a class of lenders each of whom is given a debenture stock certificate specifying the part a creditor is entitled to.
-It is the indebtedness itself and the certificate evidences the stockholders interest.
- Debenture stock can be divided and transferred in fractions.
- It is created by a trust deed.
d)Unsecured debentures These are debentures that are naked i.e. They have no charge or security to secure the amount borrowed. The creditor can only sue the debtor in the event of default.
Secured debenture
- This is a debenture which contain a charge over the assets of the company.
- May be secured by a fixed or floating charge or both.
marto answered the question on February 6, 2019 at 10:54
- Anna and Berita are directors of Pesa Limited and each holds forty per cent of the ordinary shares. The remainder is held by Charles.
...(Solved)
Anna and Berita are directors of Pesa Limited and each holds forty per cent of the ordinary shares. The remainder is held by Charles.
In addition to the shares, Anna also holds debentures issued by Pesa Limited, redeemable on 8 August 2003. Anna wishes to dispose of her shares and debentures.
On the other hand, Berita and Charles do not wish Anna's substantial interest in the company to pass to other people upon the sale of the shares and debentures.
Advise Pesa Limited on the legality of each of the courses of action listed below:
(a) Pesa Limited will raise the necessary funds and purchase the shares and debentures.
(b) Pesa Limited will raise funds and lend them to Charles so that he may purchase Anna's debentures. Charles will also arrange for a private loan guaranteed by Pesa Limited so that he may purchase Anna‟s shares.
(c) A new company, Pendo Limited, will be formed and eighty per cent of its ordinary shares will be held by Pesa Limited. Berita and Charles to hold ten per cent each. Pendo limited will borrow money to buy Anna's shares and debentures
Date posted: February 6, 2019. Answers (1)
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(a) The restrictions upon the choice of a corporate name with which a promoter must
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(c) The promoter's right to payment for her services by the company after
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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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Why is the holder of a floating charge in a less favorable position?
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) Rita applied for 2,000 shares in Bidii Yako Company Ltd. following her application, no...(Solved)
a)Explain the proprietary rights of a member in a company.
(b) Rita applied for 2,000 shares in Bidii Yako Company Ltd. following her application, no allotment at the time was made. Later on without her application, 2,000 shares were transferred to her and her name placed in the register of members.
Rita knowing that her name was in the register of members took no steps to have it rectified. Later on, the company collapsed. Rita was called upon to pay up on her shares and she has declined to do so arguing that she was not a member of Bidii Yako Company Ltd. She seeks your advice on the matter. Advise Rita
Date posted: February 6, 2019. Answers (1)
- a) Outline the information that is required when registering a charge.
b) In July 2001, Muungano Ltd obtained an overdraft from a bank upon...(Solved)
a) Outline the information that is required when registering a charge.
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Discuss the validity of the charge
Date posted: February 6, 2019. Answers (1)
- Triple H, Undertaker Austin and Flair are directors of Mieleka Ltd a company regulated by Table A. Fair is the managing director and undertaker...(Solved)
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:
i) Lend Triple H Shs.500,000 to purchase a car for his wife Stephane for her personal use;
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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ii) What are the consequences of the necessary approval not being obtained?
Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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ii) What are the rights of...(Solved)
In a company with a share capital:
i) What is the members right to appoint a proxy
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Date posted: February 6, 2019. Answers (1)
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Outline the various matters that require to be sanctioned by members through a special
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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
ii) XYZ Supermarket Ltd
c) Bob and Babs jointly own shares in Powerfoam Ltd. They are seeking your advice
regarding their legal position as joint holders of the shares. Advice them
Date posted: February 6, 2019. Answers (1)
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The capital of may no doubt be diminished by the expenditure upon and reasonably incidental to all the objects specified. A part of it may be lost in carrying on the business operations authorized. Of this, all persons trusting the company are aware and take the risk. But creditors have the right to rely and were intended by the legislature to have the right to rely on the capital remaining undistributed by any expenditure outside these limits or by the return of nay of it to the shareholders.
Per Lord Herchell L.J. in Trevor v Whitworth (1837) 12 App. Cap 409 at 415.
a)Discuss this statement outlining the circumstances and conditions under which companies may reduce their capital.
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Date posted: February 6, 2019. Answers (1)