LW Global Chapter 12 Questions Company Law
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hello
can someone kindly explain what question 4 is about?
I don’t understand the question
What exactly is there that you don’t understand? I have re-read the question three more times and cannot imagine what word(s) there are that you don’t understand.
The unpaid elements of shares in issue are a liability. In law, these unpaid amounts have the title ‘reserve liability’ OK so far?
Right! If they are (and they really are!) a liability, then they are a liability of which of the following?
The debenture holders
The company
The liquidator
The directors.
OK – there is nothing there to not understand. There is, apparently, a lack of knowledge where really your post should have read ‘I don’t know the answer to question 4’ … but that’s a matter of a failure to know the answer rather than a failure to understand the question.
Am I right?
And the answer is a question of fact, not opinion. The company law specifically identifies the body that shall acknowledge the ‘ownership’ of this reserve liability!
Let me know if you need the answer!
i got 4 out of 5 this is amazing test.