Topic: Types of capital and the financing of companies

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BCL – Nov 2024 – L1 – Q3b – Financial Assistance for Share Purchase

Conditions under which a company may provide financial assistance for share purchase.

Question

Under what circumstances will the provision of financial assistance by a company for the purchase of its own shares be permitted?

Answer

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Tags: Business Financing, Capital structure, Corporate Law, Financial Assistance, Share Purchase
Level: Level 1

Topic: Types of capital and the financing of companies
Series: Nov 2024

BCL – Apr 2022 – L1 – Q3b – Types of capital and the financing of companies

Suggest financing methods for AirQuick Ghana office and explain advantages and disadvantages of each method.

Question

b) AirQuick is one of the world’s leading aerospace companies. AirQuick and the Ghana Civil Aviation Authority have conducted a feasibility study in Ghana with the intent of setting up a subsidiary in Ghana. The study which ran for two years has been concluded and a new subsidiary office of AirQuick has just been established in Ghana to serve the West African hub. You have been given a two-year contract in the legal department.

Required:

i) As a business law expert, you have been asked to suggest TWO (2) ways to finance or sustain the activities of the AirQuick Ghana office. (6 marks)

ii) Explain ONE (1) advantage and ONE (1) disadvantage of each financing source identified in i) above. (4 marks)

Answer

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Tags: Company Financing, Debentures, Loan Capital, Public-Private Partnerships, Share Capital
Level: Level 1

Topic: Types of capital and the financing of companies
Series: APR 2022

BCL – Nov 2020 – L1 – Q2c – Types of Capital and the Financing of Companies

Explain the concepts of a fixed charge and a bond in the context of loans taken by companies.

Question

A loan taken by a company limited by shares may or may not be secured by a charge.

Required:
Explain the following:
i) A fixed charge (3 marks)
ii) A bond (3 marks)

Answer

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Tags: Bond, Companies Act, Company Law, Fixed Charge, Loans
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2020

BCL – Nov 2020 – L1 – Q2b – Types of Capital and the Financing of Companies

Identify two prohibited transactions in shares under Section 56(1) of the Companies Act, 1963 ACT 179.

Question

State TWO (2) prohibited transactions in shares under section 56(1) of the Companies Act, 1963 ACT 179 where a company limited by shares is prohibited from transacting in its shares.

(4 marks)

Answer

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Tags: Companies Act, Company Law, Prohibited Transactions, Shares
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2020

BCL – May 2017 – L1 – Q5b – Types of capital and the financing of companies

List the stages involved in official or compulsory liquidation.

Question

b) List the stages involved in official or compulsory liquidation. (4 marks)

Answer

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Tags: Company Law, Compulsory Liquidation, Liquidation Stages, Official Liquidation
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2017

BCL – May 2017 – L1 – Q5a – Types of capital and the financing of companies

List and explain the duties of a liquidator under private or solvent

Question

a) The liquidator under private or solvent liquidation performs certain duties. State THREE of these duties. (10 marks)

Answer

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Tags: Company Law, Duties of Liquidator, Liquidation, Winding-up
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2017

BCL – May 2017 – L1 – Q4a – Types of Companies and Their Legal Structure

Explain the different types of companies under the Companies Act, 1963 (Act 179).

Question

a) Explain the types of companies known to you under the Companies Act, 1963 (Act 179). (12 marks)

Answer

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Tags: Companies Act, Company Law, Limited Liability, Public Company, Types of Companies
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2017

BCL – Nov 2016 – L1 – Q5 – Types of Capital and the Financing of Companies

Discuss the requirements for share certificates and prohibited transactions in shares under the Companies Act, 1963 (Act 179).

Question

a) Share certificates are required to be issued to shareholders by a company. List the particulars that are required, by law, to be on the certificate.
(6 marks)

b) Certain transactions in shares are statutorily prohibited by the provisions of the Companies Act, 1963, Act 179. List FOUR of the said transactions.
(4 marks)

c) State TWO effects of a breach of the provisions prohibiting these transactions.
(4 marks)

d) State the liability of a member of a company prior to the winding up of the company.
(4 marks)

Answer

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Tags: Company Law, Ghana, Share Certificates, Statutory Prohibitions
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2016

BCL – Mar 2024 – L1 – Q5b – Types of Capital and the Financing of Companies

Explain the concepts of a fixed charge and a bond in the context of company financing.

Question

A loan taken by a company limited by shares may or may not be secured by a charge.

Required:

In reference to the above statement, explain the following:

i) A fixed charge (3 marks)

ii) A bond (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bond, Company Financing, Company Law, Fixed Charge, Secured Loans
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAR 2024

BCL – Mar 2024 – L1 – Q5a – Types of Capital and the Financing of Companies

Identify and explain prohibited transactions in shares under the Companies Act, 2019 (Act 992).

Question

State TWO (2) prohibited transactions in shares under section 58(1) of the Companies Act, 2019, Act 992 where a company limited by shares is prohibited from transacting in its shares.

(4 marks)

Answer

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Tags: Companies Act, Company Law, Prohibited Transactions, Shares
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAR 2024

BCL – Nov 2024 – L1 – Q3b – Financial Assistance for Share Purchase

Conditions under which a company may provide financial assistance for share purchase.

Question

Under what circumstances will the provision of financial assistance by a company for the purchase of its own shares be permitted?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Financing, Capital structure, Corporate Law, Financial Assistance, Share Purchase
Level: Level 1

Topic: Types of capital and the financing of companies
Series: Nov 2024

BCL – Apr 2022 – L1 – Q3b – Types of capital and the financing of companies

Suggest financing methods for AirQuick Ghana office and explain advantages and disadvantages of each method.

Question

Required:

i) As a business law expert, you have been asked to suggest TWO (2) ways to finance or sustain the activities of the AirQuick Ghana office. (6 marks)

ii) Explain ONE (1) advantage and ONE (1) disadvantage of each financing source identified in i) above. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Financing, Debentures, Loan Capital, Public-Private Partnerships, Share Capital
Level: Level 1

Topic: Types of capital and the financing of companies
Series: APR 2022

BCL – Nov 2020 – L1 – Q2c – Types of Capital and the Financing of Companies

Explain the concepts of a fixed charge and a bond in the context of loans taken by companies.

Question

A loan taken by a company limited by shares may or may not be secured by a charge.

Required:
Explain the following:
i) A fixed charge (3 marks)
ii) A bond (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bond, Companies Act, Company Law, Fixed Charge, Loans
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2020

BCL – Nov 2020 – L1 – Q2b – Types of Capital and the Financing of Companies

Identify two prohibited transactions in shares under Section 56(1) of the Companies Act, 1963 ACT 179.

Question

State TWO (2) prohibited transactions in shares under section 56(1) of the Companies Act, 1963 ACT 179 where a company limited by shares is prohibited from transacting in its shares.

(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Companies Act, Company Law, Prohibited Transactions, Shares
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2020

BCL – May 2017 – L1 – Q5b – Types of capital and the financing of companies

List the stages involved in official or compulsory liquidation.

Question

b) List the stages involved in official or compulsory liquidation. (4 marks)

Answer

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Tags: Company Law, Compulsory Liquidation, Liquidation Stages, Official Liquidation
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2017

BCL – May 2017 – L1 – Q5a – Types of capital and the financing of companies

List and explain the duties of a liquidator under private or solvent

Question

a) The liquidator under private or solvent liquidation performs certain duties. State THREE of these duties. (10 marks)

Answer

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Tags: Company Law, Duties of Liquidator, Liquidation, Winding-up
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2017

BCL – May 2017 – L1 – Q4a – Types of Companies and Their Legal Structure

Explain the different types of companies under the Companies Act, 1963 (Act 179).

Question

a) Explain the types of companies known to you under the Companies Act, 1963 (Act 179). (12 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Companies Act, Company Law, Limited Liability, Public Company, Types of Companies
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAY 2017

BCL – Nov 2016 – L1 – Q5 – Types of Capital and the Financing of Companies

Discuss the requirements for share certificates and prohibited transactions in shares under the Companies Act, 1963 (Act 179).

Question

a) Share certificates are required to be issued to shareholders by a company. List the particulars that are required, by law, to be on the certificate.
(6 marks)

b) Certain transactions in shares are statutorily prohibited by the provisions of the Companies Act, 1963, Act 179. List FOUR of the said transactions.
(4 marks)

c) State TWO effects of a breach of the provisions prohibiting these transactions.
(4 marks)

d) State the liability of a member of a company prior to the winding up of the company.
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Ghana, Share Certificates, Statutory Prohibitions
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2016

BCL – Mar 2024 – L1 – Q5b – Types of Capital and the Financing of Companies

Explain the concepts of a fixed charge and a bond in the context of company financing.

Question

A loan taken by a company limited by shares may or may not be secured by a charge.

Required:

In reference to the above statement, explain the following:

i) A fixed charge (3 marks)

ii) A bond (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bond, Company Financing, Company Law, Fixed Charge, Secured Loans
Level: Level 1

Topic: Types of capital and the financing of companies
Series: MAR 2024

BCL – Mar 2024 – L1 – Q5a – Types of Capital and the Financing of Companies

Identify and explain prohibited transactions in shares under the Companies Act, 2019 (Act 992).

Question

State TWO (2) prohibited transactions in shares under section 58(1) of the Companies Act, 2019, Act 992 where a company limited by shares is prohibited from transacting in its shares.

(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Companies Act, Company Law, Prohibited Transactions, Shares
Level: Level 1