Question Tag: Floating Charge

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BL – Nov 2014 – L1 – SB – Q1b – Company Law

Explain two differences between fixed charge and floating charge on company properties.

Question

One of the conditions attached to loans obtained by a registered company is the creation of a charge on the properties of the company.
You are required to explain briefly any TWO differences between fixed charge and floating charge.
(Total 5 Marks)

Answer

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Tags: Company Law, Fixed Charge, Floating Charge, Loan Security
Level: Level 1

Topic: Company Law
Series: NOV 2014

BL – Nov 2014 – L1 – SA – Q7 – Company Law

Identifying assets not covered by a floating charge over a company's properties

Question

A floating charge over a company’s properties will cover all of the following EXCEPT:
A. Cash
B. Stock-in-Trade
C. Plant and Machinery
D. Rent
E. Dividends

Answer

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Tags: Company Assets, Floating Charge, Security Interest
Level: Level 1

Topic: Company Law
Series: NOV 2014

BL – Nov 2022 – L1 – SB – Q4a – Company Law

Explaining the advantages of a floating charge to a company.

Question

Debenture stock is secured by charge on the company’s assets.

Required:
Explain two advantages of floating charge to the company.

Answer

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Tags: Corporate finance, Debenture, Floating Charge
Level: Level 1

Topic: Company Law
Series: NOV 2022

BL – Nov 2022 – L1 – SA – Q5 – Company Law

Identifying the term for an equitable charge on all assets as security.

Question

An equitable charge on all of the assets or property of a company as security for indebtedness of the company is called:

A. Assets charge
B. Property charge
C. Fixed charge
D. Multiple charge
E. Floating charge

Answer

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Tags: Floating Charge, Security
Level: Level 1

Topic: Company Law
Series: NOV 2022

BL – May 2015 – L1 – SA – Q8 – Company Law

Identify which of the listed characteristics does not apply to a floating charge.

Question

The following are the major characteristics of a floating charge EXCEPT, it is
A. Not attached to any particular asset or assets of the company
B. Attached to a particular asset or assets of the company
C. Ambulatory and shifting in nature
D. Equitable in nature
E. A form of company security

Answer

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Tags: Company Security, Floating Charge
Level: Level 1

Topic: Company Law
Series: MAY 2015

BCL – May 2019 – L1 – Q6a – Company Law

Explains the concepts of floating charge, naked debentures, and income surplus in company law.

Question

a) Explain the following:
i) Floating charge
ii) Naked Debentures
iii) Income Surplus
(12 marks)

Answer

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Tags: Company Capital, Floating Charge, Income Surplus, Naked Debentures
Level: Level 1

Topic: Contract Law
Series: MAY 2019

BCL – May 2018 – L1 – Q6b – Types of Capital and the Financing of Companies

Define a debenture and explain when a receiver/manager is appointed.

Question

b)
i) Define a debenture. (2 marks)

ii) State the time when a debenture holder on a floating charge will deem it necessary to apply to the court for the appointment of a receiver/manager.

(4 marks)

iii) At what time will an annual general meeting of a company limited by shares be dispensed with in any year? (2 marks)

iv) State FOUR persons who qualify to receive notices of general meetings in a company limited by shares. (8 marks)

Answer

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Tags: Debentures, Floating Charge, Receiver Appointment
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2018

BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies

Distinguish between fixed and floating charges and explain circumstances for crystallization.

Question

a) A company may raise a loan capital and/or long-term funds by the issue of a debenture or a series of debentures or of debenture stock in order to finance the business without increasing its share capital. Debentures may be secured by a charge or may be unsecured by any charge.

Required:
i) In THREE (3) ways, distinguish between a fixed charge and a floating charge.
(6 marks)

ii) Under what TWO (2) circumstances can a floating charge crystallize into a fixed charge?
(4 marks)

Answer

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Tags: Company Financing, Fixed Charge, Floating Charge
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAR 2023

BL – Nov 2014 – L1 – SB – Q1b – Company Law

Explain two differences between fixed charge and floating charge on company properties.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Fixed Charge, Floating Charge, Loan Security
Level: Level 1

Topic: Company Law
Series: NOV 2014

BL – Nov 2014 – L1 – SA – Q7 – Company Law

Identifying assets not covered by a floating charge over a company's properties

Question

A floating charge over a company’s properties will cover all of the following EXCEPT:
A. Cash
B. Stock-in-Trade
C. Plant and Machinery
D. Rent
E. Dividends

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Assets, Floating Charge, Security Interest
Level: Level 1

Topic: Company Law
Series: NOV 2014

BL – Nov 2022 – L1 – SB – Q4a – Company Law

Explaining the advantages of a floating charge to a company.

Question

Debenture stock is secured by charge on the company’s assets.

Required:
Explain two advantages of floating charge to the company.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate finance, Debenture, Floating Charge
Level: Level 1

Topic: Company Law
Series: NOV 2022

BL – Nov 2022 – L1 – SA – Q5 – Company Law

Identifying the term for an equitable charge on all assets as security.

Question

An equitable charge on all of the assets or property of a company as security for indebtedness of the company is called:

A. Assets charge
B. Property charge
C. Fixed charge
D. Multiple charge
E. Floating charge

Answer

Find Related Questions by Tags, levels, etc.

Tags: Floating Charge, Security
Level: Level 1

Topic: Company Law
Series: NOV 2022

BL – May 2015 – L1 – SA – Q8 – Company Law

Identify which of the listed characteristics does not apply to a floating charge.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Security, Floating Charge
Level: Level 1

Topic: Company Law
Series: MAY 2015

BCL – May 2019 – L1 – Q6a – Company Law

Explains the concepts of floating charge, naked debentures, and income surplus in company law.

Question

a) Explain the following:
i) Floating charge
ii) Naked Debentures
iii) Income Surplus
(12 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Capital, Floating Charge, Income Surplus, Naked Debentures
Level: Level 1

Topic: Contract Law
Series: MAY 2019

BCL – May 2018 – L1 – Q6b – Types of Capital and the Financing of Companies

Define a debenture and explain when a receiver/manager is appointed.

Question

b)
i) Define a debenture. (2 marks)

ii) State the time when a debenture holder on a floating charge will deem it necessary to apply to the court for the appointment of a receiver/manager.

(4 marks)

iii) At what time will an annual general meeting of a company limited by shares be dispensed with in any year? (2 marks)

iv) State FOUR persons who qualify to receive notices of general meetings in a company limited by shares. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Debentures, Floating Charge, Receiver Appointment
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2018

BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies

Distinguish between fixed and floating charges and explain circumstances for crystallization.

Question

Required:
i) In THREE (3) ways, distinguish between a fixed charge and a floating charge.
(6 marks)

ii) Under what TWO (2) circumstances can a floating charge crystallize into a fixed charge?
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Financing, Fixed Charge, Floating Charge
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAR 2023

Question Tag: Floating Charge

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BL – Nov 2014 – L1 – SB – Q1b – Company Law

Explain two differences between fixed charge and floating charge on company properties.

BL – Nov 2014 – L1 – SA – Q7 – Company Law

Identifying assets not covered by a floating charge over a company's properties

BL – Nov 2022 – L1 – SB – Q4a – Company Law

Explaining the advantages of a floating charge to a company.

BL – Nov 2022 – L1 – SA – Q5 – Company Law

Identifying the term for an equitable charge on all assets as security.

BL – May 2015 – L1 – SA – Q8 – Company Law

Identify which of the listed characteristics does not apply to a floating charge.

BCL – May 2019 – L1 – Q6a – Company Law

Explains the concepts of floating charge, naked debentures, and income surplus in company law.

BCL – May 2018 – L1 – Q6b – Types of Capital and the Financing of Companies

Define a debenture and explain when a receiver/manager is appointed.

BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies

Distinguish between fixed and floating charges and explain circumstances for crystallization.

BL – Nov 2014 – L1 – SB – Q1b – Company Law

Explain two differences between fixed charge and floating charge on company properties.

BL – Nov 2014 – L1 – SA – Q7 – Company Law

Identifying assets not covered by a floating charge over a company's properties

BL – Nov 2022 – L1 – SB – Q4a – Company Law

Explaining the advantages of a floating charge to a company.

BL – Nov 2022 – L1 – SA – Q5 – Company Law

Identifying the term for an equitable charge on all assets as security.

BL – May 2015 – L1 – SA – Q8 – Company Law

Identify which of the listed characteristics does not apply to a floating charge.

BCL – May 2019 – L1 – Q6a – Company Law

Explains the concepts of floating charge, naked debentures, and income surplus in company law.

BCL – May 2018 – L1 – Q6b – Types of Capital and the Financing of Companies

Define a debenture and explain when a receiver/manager is appointed.

BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies

Distinguish between fixed and floating charges and explain circumstances for crystallization.

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