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As always, I really appreciate all your help, Mike!
1. What are criteria for a private company to be exempt from audit?
2. Is there a reason why written resolution cannot remove an auditor?
3. What is a solvency statement?
4. Is scrip dividend given to those who purchased additional shares?
5. Why is buying back fully paid share capital with cash not a valid method to reduce its share capital?
6. What is a debenture trust deed?
7. Just to clarify, is the action of selling shares to the public called prospectus?
8. Do companies have maximum amount of borrowing powers?
Tony, I’m over-faced!
That’s 21 questions in just 4 posts
If you want to ask questions, please don’t do multiples like this
Let’s restrict it to no more that 2 per post and, even then, one per post would be preferable but work on the principle that each separate topic should have its own defining thread heading
You appear to be saving up questions in order to give me plenty to get my teeth into … this is not appreciated
I’m going to ignore this last post from you so let’s start with a clean sheet
First of all, have you watched the free videos on this site and listened to the lectures? That would be a really good place to start!
I am sorry about the overloading amount of questions.
I was just faced with curiosities while doing the questions.
I will try to ask 2 per post.
1. What is debenture trust deed?
2. Why is buying back fully paid share capital with cash not a valid method to reduce its share capital?
Again, sorry about the overwhelming amount of questions.
1) When a company issues a series of debentures, the people that buy those debentures (the debenture holders) have no idea of the identity of any other debenture holder in that series
Now, whereas a member of a company can attend the AGM and meet with other members at that meeting, there is no similar opportunity for the debenture holders
So, when a member has a grievance against the company, there is the facility for the member to complain and (theoretically at least) amalgamate their interests with others to form a more effective lobby
But when the company fails to pay debenture interest on time … what can those individual lenders do about it?
Not a lot!
So a debenture trust deed is, in effect, the rules of the terms of the debenture (it’s the debenture holders’ equivalent of the members’ Articles of Association) and Trustees are appointed to make sure that all these thousands of individuals are treated fairly according to the terms set out in the trust deed
2) Who has told you that it isn’t? And if you’re going to quote BPP text to me, make sure that you quote it fully and accurately
Finally, the heading to this thread is quite inappropriate! And the mixture of ‘debenture trust deeds’ with ‘capital reduction’ is not an easy alliance
These should have been on two separate threads with appropriate headings such as “Debenture trust deeds’ and “Reduction of capital’
OK?
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