- 10 Marks
BCL – May 2020 – L2 – Q2b – Company Law
Discuss the entitlement of preferential shareholders to further dividends and principles relating to minimum capital for companies.
Question
A group of young members of Nob Company Limited petitioned the Board of Directors of the Company over dividend payments at the close of the company’s annual general meeting. They claimed that they were preferential shareholders and that after dividends were declared for them, they had the privilege for fair participation in the distribution of the remaining shares.
Required:
i) From the above scenario, are the preferential shareholders entitled to any further dividend?
(6 marks)
ii) State TWO (2) principles relating to minimum capital for a company limited by shares pursuant to provisions of the law.
(4 marks)
Find Related Questions by Tags, levels, etc.
Report an error
