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1)Sir I already wrote in my original post that which 2 of the following statements are correct.. Sir my question is that accountant also gave a disclaimer, so won’t it be treated as an exclusion clause?
2)What are participating preference shares?
An accountant giving a disclaimer is like signing an audit report “E & OE” – the abbreviation for “Errors and Omissions Excepted”
It can’t happen!!
And, before you ask, it WAS acceptable for a merchant bank similarly to exclude liability in the case Hedley Byrne
In the event of a liquidation and there are excess funds after all payables have been paid in full and all shareholders have been repaid their capital contributions, the surplus is normally distributed amongst just the ordinary / equity shareholders
Where there are participating preference shares, those preference shareholders get to share the remaining surplus with the equity shareholders
OK?
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