Company law
Discuss the conditions of the Solvency Test required of a public company for the purpose of the:
(a) redemption of preference shares (20 marks)
(b) purchase of its own shares (20 marks)
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Discuss the conditions of the Solvency Test required of a public company for the purpose of...
Discuss the conditions of the Solvency Test required of a public company for the purpose of the: a) redemption of preference shares (15 marks) b) purchase of its own shares ( 15 marks)
Case No.1 Oman Oil Limited issued 80,000 shares of OMR 10 each, at par payable as...
Case No.1
Oman Oil Limited issued 80,000 shares of OMR 10 each, at par
payable as follows; on application OMR 3; on allotment OMR 2 and on
first call OMR 2 and final call OMR 2. All the shares were
subscribed for and the company received all the money due, with the
exception of the allotment and call money on 2,500 shares. These
shares were forfeited and re-issued at OMR 8 per share.
Question No. 1
i) You are required...
PKT Bhd. is planning to issue new shares in order to increase its share capital. based...
PKT Bhd. is planning to issue new shares in order to increase its share capital. based on the Companies Act 2016, advise PKT Bhd. on the following: a) Types of shares a company may be issued (10 marks) b) Rights and powers attaching to shares (10 marks) c) The redemption of the preference shares (15 marks)
QUESTION 2 (25 MARKS) The following items were disclosed in the Statement of Financial Position of Adanees Berhad as at 31 October 2015 Adaness Berhad Statement of Financial Position as at 31 Octo...
QUESTION 2 (25 MARKS) The following items were disclosed in the Statement of Financial Position of Adanees Berhad as at 31 October 2015 Adaness Berhad Statement of Financial Position as at 31 October 2015 RM 200,000 Authorised Capital 200,000 5% Redeemable preference shares of RM 1 00 each 300,000 Ordinary shares of RM2.00 each 600,000 800,000 Issued Shares Capital 200,000 300,000 000 5% Redeemable preference shares of RM 1 .00 each 200, 150,000 Ordinary shares of RM2.00 each Reserves 116,000...
20. 20 Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in...
20.
20 Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions The following disclosure note appeared in the company's 2018 annual report . 0.35 points Note 5. Convertible Preferred Stock (in part) The Company has the following Convertible Preferred Stock outstanding as of September 2018: Date of issuance: Optionally redeemable beginning: Par value (gross proceeds): Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in...
Cumnor Hill Ltd issues 1 million redeemable preference shares of $2.00 each on 1st July 2019. The shares offer a rate o...
Cumnor Hill Ltd issues 1 million redeemable preference shares of $2.00 each on 1st July 2019. The shares offer a rate of return of 7 per cent per annum. The shares are redeemed at the option of the shareholders on 30th June 2021 Required: a) Would you classify these preference shares as debt or as equity? Why? (1 mark) b) Provide the journal entries to account for the issue and subsequent redemption of the shares, assuming that the issue was...
Please show all working QUESTION 2: COMPANY EQUITY, SPECIAL REPORTING ISSUES AND EPS Question 2 consists...
Please show all working
QUESTION 2: COMPANY EQUITY, SPECIAL REPORTING ISSUES AND EPS Question 2 consists of three separate parts, Part 1, Part 2 and Part 3. All parts are compulsory. Part 1 Kelly Ltd undertook an issue of ordinary and preference shares in April 2018 as stated by the following transactions: 2018 A prospectus was issued inviting applications for 100,000 ordinary shares at an issue price of $1.50, fully payable on application. The prospectus also offered 100,000 10 %...
Please show all working QUESTION 2: COMPANY EQUITY, SPECIAL REPORTING ISSUES AND EPS Question 2 consists...
Please show all working
QUESTION 2: COMPANY EQUITY, SPECIAL REPORTING ISSUES AND EPS Question 2 consists of three separate parts, Part 1, Part 2 and Part 3. All parts are compulsory. Part 1 Kelly Ltd undertook an issue of ordinary and preference shares in April 2018 as stated by the following transactions: 2018 A prospectus was issued inviting applications for 100,000 ordinary shares at an issue price of $1.50, fully payable on application. The prospectus also offered 100,000 10 %...
QUESTION ONE Masaba Company Ltd. is a retail provider with an authorised share capital of 800,000...
QUESTION ONE Masaba Company Ltd. is a retail provider with an authorised share capital of 800,000 Sh.20 ordinary shares and 250,000 8% Sh.20 redeemable preference shares. The following financial information reflects the position of the company as at 31 December 2018 after preparing the Trading, profit and loss account: Sh. `000' Provision for depreciation Fittings 1,500, Motor vehicles 3,740 Goodwill 1,200 Issued share capital: 600,000 Sh.20 Ordinary shares 12,000 250,000 Sh.20 Redeemable preference shares 5,000 Share premium account 400...
Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark...
Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company's 2018 annual report: Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2018: Date of issuance: Optionally redeemable beginning: Par value (gross proceeds) : Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in which to be converted:...
Case No.1
Oman Oil Limited issued 80,000 shares of OMR 10 each, at par
payable as follows; on application OMR 3; on allotment OMR 2 and on
first call OMR 2 and final call OMR 2. All the shares were
subscribed for and the company received all the money due, with the
exception of the allotment and call money on 2,500 shares. These
shares were forfeited and re-issued at OMR 8 per share.
Question No. 1
i) You are required...
QUESTION 2 (25 MARKS) The following items were disclosed in the Statement of Financial Position of Adanees Berhad as at 31 October 2015 Adaness Berhad Statement of Financial Position as at 31 October 2015 RM 200,000 Authorised Capital 200,000 5% Redeemable preference shares of RM 1 00 each 300,000 Ordinary shares of RM2.00 each 600,000 800,000 Issued Shares Capital 200,000 300,000 000 5% Redeemable preference shares of RM 1 .00 each 200, 150,000 Ordinary shares of RM2.00 each Reserves 116,000...
20.
20 Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions The following disclosure note appeared in the company's 2018 annual report . 0.35 points Note 5. Convertible Preferred Stock (in part) The Company has the following Convertible Preferred Stock outstanding as of September 2018: Date of issuance: Optionally redeemable beginning: Par value (gross proceeds): Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in...
Cumnor Hill Ltd issues 1 million redeemable preference shares of $2.00 each on 1st July 2019. The shares offer a rate of return of 7 per cent per annum. The shares are redeemed at the option of the shareholders on 30th June 2021 Required: a) Would you classify these preference shares as debt or as equity? Why? (1 mark) b) Provide the journal entries to account for the issue and subsequent redemption of the shares, assuming that the issue was...
Please show all working
QUESTION 2: COMPANY EQUITY, SPECIAL REPORTING ISSUES AND EPS Question 2 consists of three separate parts, Part 1, Part 2 and Part 3. All parts are compulsory. Part 1 Kelly Ltd undertook an issue of ordinary and preference shares in April 2018 as stated by the following transactions: 2018 A prospectus was issued inviting applications for 100,000 ordinary shares at an issue price of $1.50, fully payable on application. The prospectus also offered 100,000 10 %...
Please show all working
QUESTION 2: COMPANY EQUITY, SPECIAL REPORTING ISSUES AND EPS Question 2 consists of three separate parts, Part 1, Part 2 and Part 3. All parts are compulsory. Part 1 Kelly Ltd undertook an issue of ordinary and preference shares in April 2018 as stated by the following transactions: 2018 A prospectus was issued inviting applications for 100,000 ordinary shares at an issue price of $1.50, fully payable on application. The prospectus also offered 100,000 10 %...
Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company's 2018 annual report: Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2018: Date of issuance: Optionally redeemable beginning: Par value (gross proceeds) : Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in which to be converted:...
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