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

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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 – Mar 2024 – L1 – Q4c – Types of Capital and the Financing of Companies, Company Law

Explain the legal significance of statements made in a share certificate under the Companies Act, 2019 (Act 992).

Question

“Statements made in a share certificate, especially where the certificate bears the common seal of the company, shall be absolute or unassailable evidence of the title of the person named in the Certificate.”

Required:

Explain if the above statement is the true position of the law in terms of the provisions of the Companies Act, Act 992.

(2 marks)

Answer

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Tags: Companies Act, Company Law, Legal Evidence, Ownership of Shares, Share Certificates
Level: Level 1

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

BCL – Mar 2024 – L1 – Q4b – Alternative Forms and Constitutions of Business Organisations

Discuss the existence of a partnership in the provided scenario and the liabilities associated with partnership actions.

Question

Three persons, Booker, Weah, and Makafui agreed to set up a restaurant. The finance was provided almost entirely by one of them, Booker. Before the restaurant opened, furniture and equipment were purchased and a laundry contract was entered into. Advertisements were placed in the newspapers and on television, apart from the fact that premises were acquired by the person who supplied the money. The parties then fell out and the business did not proceed as planned.

Required:

i) Explain whether in the circumstances of the facts, there is a Partnership in terms of the provisions of the Incorporated Private Partnership Act, 1962 (Act 152). (5 marks)

ii) State TWO (2) liabilities of Partnership for action or transaction done in the course of a Partnership business.

(3 marks)

Answer

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Tags: Business Formation, Formation, Incorporated Private Partnership Act, Liabilities, Partnership Law
Level: Level 1

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

BCL – Nov 2018 – L1 – Q7b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

Question

State THREE (3) options that a company limited by shares has in raising capital to finance its operational activities. (6 marks)

Answer

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Tags: Capital raising, Company Law, Corporate finance, Debt Financing, Equity
Level: Level 1

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

BCL – Nov 2018 – L1 – Q6a – Types of Capital and the Financing of Companies

Explain three main effects of the incorporation of a company under the Companies Act.

Question

Explain THREE (3) main effects of incorporation of a company under the Companies Act 1963 (Act 179).

(9 marks)

Answer

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Tags: Company Incorporation, Company Law, Corporate Identity, Legal Effects
Level: Level 1

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

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 – May 2018 – L1 – Q6a – Types of Capital and the Financing of Companies

Explain how a company acquires interest in pre-incorporation contracts.

Question

a) Explain how a company acquires interest in pre-incorporation contracts. (4 marks)

Answer

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Tags: Company Law, Contract Ratification, Pre-Incorporation Contracts
Level: Level 1

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

BCL – May 2018 – L1 – Q5b – Types of Capital and the Financing of Companies

Explain whether members can claim ownership in an incorporated company.

Question

Explain whether any of them can claim ownership of the company. (6 marks)

Answer

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Tags: Incorporated Company, Legal Personality, Ownership
Level: Level 1

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

BCL – Nov 2015 – L1 – Q5 – Types of Capital and the Financing of Companies

Discuss prohibited transactions in respect of shares and the reasons for these prohibitions.

Question

The Directors of a company are prohibited from making certain transactions in respect of shares. Mention the prohibited transactions and discuss fully the reasons for the prohibitions. (20 marks)

Answer

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Tags: Company Law, Corporate finance, Prohibited Transactions, Shares
Level: Level 1

Topic: Types of capital and the financing of companies
Series: NOV 2015

BCL – Nov 2023 – L1 – Q5b – Types of Capital and the Financing of Companies

Types of Capital and the Financing of Companies

Question

b) Explain Liquidity of shares. (2 marks)

Answer

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Level: Level 1

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

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

Explain the content and effect of a share certificate.

Question

a) The Managing Director of your organisation has just received a share certificate from an agent of Ecobank Transactional and considers the document as incomplete.

Required: Explain to your Managing Director the content and the effect of a share certificate. (8 marks)

Answer

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Tags: Company Law, Corporate Documentation, Share Certificate, Shares
Level: Level 1