Company Securities

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

Question

As the Branch Manager of your High Street Branch in Accen, your Securities Clerk asks you the following questions:
a. We submitted any application to the Director/Credit showing the following details of Account X Ltd

Proposed Limit: GH$500,000,000;
Proposed Security: Fixed Charge over the factory, minimum forced sale value (FSV) GH$1,500,000,000 on a professional valuation.
The Director/Credit’s office has agreed to lend, but have expressed dissatisfaction with the security and have requested us to take a Debenture under.
Explain the following to your Clerk:
i. What is a Debenture?
ii. Why is the Director/Credit’s’ office requesting for a debenture over the company’s fixed and floating assets?
b. I have read some correspondence about the appointment of an “Administrative Receiver” for Z Limited. Can you explain what “Administrative Receiver” means, how the administrative receiver is appointed and what the administrative receiver does?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Administrative Receiver, Appointment, Companies Act, Company Securities, Debenture, Duties, Fixed Charge, Floating Charge, Insolvency, Receivership
Level: Level 3

Topic: Securities Acceptable to Bankers
Series: APRIL 2016

BL – Nov 2021 – L1 – SB – Q2 – Company Law

Identifying torts affecting economic interests and explaining company securities and the role of a court-appointed receiver.

Question

a. Torts have categories.

Required:
State FOUR categories of tort that affect economic interest. (4 Marks)

b. Chief Afeez is the chairman and majority shareholder of Afeez Nigeria Limited which has won a contract of N500 million that is much beyond the capacity of Afeez Nigeria Limited. Chief Afeez decides to raise the capital for the company by issuing shares and inviting friends to acquire shares in the company as well as issuing debentures.

Required:
Explain briefly FOUR of the following:

i. Company securities
ii. Debentures
iii. Share capital
iv. Preference shares
v. Shareholder (12 Marks)

c. You are a court-appointed receiver of a company with several persons, including debenture holders, having interests in its assets.

Required:
Explain the step you should take in determining how the proceeds of the receivership are to be distributed. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Securities, Economic Interests, Receivership, Torts
Level: Level 1

Topic: Company Law
Series: NOV 2021

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

Question

Proposed Limit: GH$500,000,000;
Proposed Security: Fixed Charge over the factory, minimum forced sale value (FSV) GH$1,500,000,000 on a professional valuation.
The Director/Credit’s office has agreed to lend, but have expressed dissatisfaction with the security and have requested us to take a Debenture under.
Explain the following to your Clerk:
i. What is a Debenture?
ii. Why is the Director/Credit’s’ office requesting for a debenture over the company’s fixed and floating assets?
b. I have read some correspondence about the appointment of an “Administrative Receiver” for Z Limited. Can you explain what “Administrative Receiver” means, how the administrative receiver is appointed and what the administrative receiver does?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Administrative Receiver, Appointment, Companies Act, Company Securities, Debenture, Duties, Fixed Charge, Floating Charge, Insolvency, Receivership
Level: Level 3

Topic: Securities Acceptable to Bankers
Series: APRIL 2016

BL – Nov 2021 – L1 – SB – Q2 – Company Law

Identifying torts affecting economic interests and explaining company securities and the role of a court-appointed receiver.

Question

a. Torts have categories.

Required:
State FOUR categories of tort that affect economic interest. (4 Marks)

Required:
Explain briefly FOUR of the following:

i. Company securities
ii. Debentures
iii. Share capital
iv. Preference shares
v. Shareholder (12 Marks)

c. You are a court-appointed receiver of a company with several persons, including debenture holders, having interests in its assets.

Required:
Explain the step you should take in determining how the proceeds of the receivership are to be distributed. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Securities, Economic Interests, Receivership, Torts
Level: Level 1

Topic: Company Law
Series: NOV 2021

Question Tag: Company Securities

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POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

BL – Nov 2021 – L1 – SB – Q2 – Company Law

Identifying torts affecting economic interests and explaining company securities and the role of a court-appointed receiver.

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

BL – Nov 2021 – L1 – SB – Q2 – Company Law

Identifying torts affecting economic interests and explaining company securities and the role of a court-appointed receiver.

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POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

You're reporting an error for "POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers"

BL – Nov 2021 – L1 – SB – Q2 – Company Law

Identifying torts affecting economic interests and explaining company securities and the role of a court-appointed receiver.

You're reporting an error for "BL – Nov 2021 – L1 – SB – Q2 – Company Law"

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

You're reporting an error for "POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers"

BL – Nov 2021 – L1 – SB – Q2 – Company Law

Identifying torts affecting economic interests and explaining company securities and the role of a court-appointed receiver.

You're reporting an error for "BL – Nov 2021 – L1 – SB – Q2 – Company Law"

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