a. Depending on the terms of the agreement between the company and its debenture holder, a company may be placed into receivership when:

i. The principal sum borrowed by the company or the interest is in arrears;

ii. The security or property of the company is in jeopardy and the

security of the debenture holder shall be in jeopardy if the court is satisfied that events have occurred or is about to occur which renders it unreasonable in the interest of the debenture holder that the company should retain the power to dispose of its assets;

iii. The company fails to fulfill any of the obligations imposed on itby the debentures or debentures trust deed;

iv. Any circumstance occurs which by the terms of the debentures or debenture to realize his security,

v. The company is being wound up;

vi. Any creditor of the company issues a process of execution against any of its assets;

vii. The company ceases to carry on business; or

viii. The creditors amounting to more than one-half of the total amount owing in respect of a class of outstanding debentures apply to court for receivership.

b. The Companies and Allied Matters Act allows a company to acquire its own shares, including redeemable shares on the following conditions:

i. If it so permitted by its articles of association;

ii. If the purchase is authorised by the shareholder’s special resolution;

iii. The company shall within seven days of the special resolution cause to be published in two national newspapers;

iv. The purchase must be only of fully paid up shares of the company;

v. The terms of purchase must provide for payment of the shares (and the payment must be from the company’s distributable profits;

vi. Within 15 days after the publication in two national newspapers, the directors of the company shall file a statutory declaration of solvency with the Corporate Affairs Commission to the effect that the company is able to pay its debts as they fall due after the purchase;

vii. Within six weeks of the publications, company creditors and dissenting shareholders may apply to court for an order to cancel the resolution; and

viii. The company may proceed with the share buyback only on the order of the court, where applicable.