1. For difference between public issue of shares and rights issue,
Can i understand as right issue is issuing more shares to existing shareholders, therefore its not diluting but for public issue of shares, its issuing shares to new shareholders therefore its diluting
But in the end, company ends up raising more capital
Is it correct ?
2. In the difference between company voluntary agreement and administration order,
- Administration can be started by creditors or directors but company voluntary agreement can only be started by liquidator ?
- administration order can continue its business while in the process of corporate reconstruction, how about company voluntary agreement ? Its not allowed to continue trading like administration order ?
Ask the Tutor ACCA AFM
Query
7y ago#11. Yes you are correct
2. Correct about an administration order. With regard to a voluntary agreement, that is an arrangement between the company and its creditors (which avoids going into liquidation). The point of doing it is so that the company can continue trading.
2. That means both administration order and company voluntary agreement, are both allowed to continue trading while in the process of reconstruction?
The only difference is that the initiators are different? And company voluntary agreement requires 75% vote by creditors?
7y ago#3Yes to both. I cannot remember what % vote is needed - that is not relevant for the exam.
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