Sir, for Q5, why aren’t preference shares ahead of ordinary shares to be paid out after all liabilities are settled? Or is it assumed that preference shares are a payable component of existing liabilities?
I don’t understand your question! I’ve just redone the test (and scored 100%!!!!) but cannot see a question where preference shares and ordinary shares could be interchanged in a liquidation
Please repost but give me the blurb of the question and then I should be able to explain it
In question 5, it asks “which of the options would allow the holder to participate in surplus funds remaining in a liquidation after all liabilities are paid in full?” and lists ordinary shares, floating charge debentures, unsecured debentures and cumulative preference shares as the options. My doubts concern the fact that ordinary shareholders are paid from surplus funds before preference shareholders?
annamalsays
Dear Sir, Thank you very much for the lectures.
I don’t understand why for the Q3 (Which of the following is not a ground for the Court to grant a compulsory winding up order of a private company ?) the correct answer is: “the company has failed to obtain the a trade certificate within the first 12 month after incorporation”, but not ” the number of members has fallen below the statutory minimum”? Thank you in advance.
Special resolution, unable to pay debts, number of members falling below statutory minimum? All these three ARE grounds for a compulsory winding up order
But failure to obtain a trading certificate for a private company? Private companies do not need trading certificates so why would a court order that a private company be wound up for some failure to take an action which it is not required to take
Hello sir, thanks for the lecture and practice exams.
But i don’t understand Q4,5 Q4. To whom is that money payable when the holder of partly paid shares pay the amount yet unpaid Answer : ‘the company’.. I thought that it is under a liquidation, all the money need to be delivered to the liquidator.
Q5 why it the surplus goes to the one who has ordinary shares?
What does it mean by ‘debentures secured by floating charges’?
in Q1 company need to pass special resolution for liquidation. May you advise what other situations that company need to pass special resolution? and which situation only need the ordinary resolution in overall of LW GLO paper. Thanks
You’ll never be asked to list those resolutions that need to be passed as special – I believe that there are around 16 / 20 of them
Most business carried out at an AGM requires only an ordinary resolution
Where it fits into a lecture I have identified the requirement for a special resolution but nowhere have I listed all those matters that need a special resolution
frostelephant says
Sir, for Q5, why aren’t preference shares ahead of ordinary shares to be paid out after all liabilities are settled? Or is it assumed that preference shares are a payable component of existing liabilities?
MikeLittle says
I don’t understand your question! I’ve just redone the test (and scored 100%!!!!) but cannot see a question where preference shares and ordinary shares could be interchanged in a liquidation
Please repost but give me the blurb of the question and then I should be able to explain it
OK?
frostelephant says
In question 5, it asks “which of the options would allow the holder to participate in surplus funds remaining in a liquidation after all liabilities are paid in full?” and lists ordinary shares, floating charge debentures, unsecured debentures and cumulative preference shares as the options. My doubts concern the fact that ordinary shareholders are paid from surplus funds before preference shareholders?
annamal says
Dear Sir, Thank you very much for the lectures.
I don’t understand why for the Q3 (Which of the following is not a ground for the Court to grant a compulsory winding up order of a private company ?) the correct answer is: “the company has failed to obtain the a trade certificate within the first 12 month after incorporation”, but not ” the number of members has fallen below the statutory minimum”?
Thank you in advance.
MikeLittle says
Special resolution, unable to pay debts, number of members falling below statutory minimum? All these three ARE grounds for a compulsory winding up order
But failure to obtain a trading certificate for a private company? Private companies do not need trading certificates so why would a court order that a private company be wound up for some failure to take an action which it is not required to take
OK?
lesliehwang says
Hello sir, thanks for the lecture and practice exams.
But i don’t understand Q4,5
Q4. To whom is that money payable when the holder of partly paid shares pay the amount yet unpaid
Answer : ‘the company’.. I thought that it is under a liquidation, all the money need to be delivered to the liquidator.
Q5 why it the surplus goes to the one who has ordinary shares?
What does it mean by ‘debentures secured by floating charges’?
thuyngo94 says
in Q1 company need to pass special resolution for liquidation.
May you advise what other situations that company need to pass special resolution? and which situation only need the ordinary resolution in overall of LW GLO paper. Thanks
MikeLittle says
You’ll never be asked to list those resolutions that need to be passed as special – I believe that there are around 16 / 20 of them
Most business carried out at an AGM requires only an ordinary resolution
Where it fits into a lecture I have identified the requirement for a special resolution but nowhere have I listed all those matters that need a special resolution
I’ve just checked on Google and see a list of 15
OK?