C)9 Companies Finance

Question 1

What type of shares does the CREST system apply to?

Answer 1

Listed shares

Question 2

What does the crest system do?

Answer 2

it allows for the electronical transfer of shares.

Question 3

in what circumstances must a public limited company re-register as a private company as a result of a reduction in its share capital?

Answer 3

When the nominal value of the alotted share capital falls below the authorised minimum.

Question 4

How much allotted share capital must a PLC have as a minimum?

Answer 4

Minimum allotted share capital of £50,000

Question 5

How much of the share capital must a PLC Company have paid up?

Answer 5

25% of the nominal value of each share

Question 6

A company must file notice of redemption and a statement of capital with the Registrar of Companies within one month following a redemption of shares. True or False

Answer 6

True

Question 7

Which of the following best defines a debenture?

Answer 7

A document that records the terms of any loan

Question 8

What is the specified time for a fixed charge?

Answer 8

6 Months

Question 9

What is the specified time for a floating charge?

Answer 9

12 Months

Question 10

Does a floating charge just apply to the current assets the company has or future assets too ?

Answer 10

The charge will also apply to future assets

Question 11

Is a floating charge converted into a fixed charge upon crystallisation ? Yes or No

Answer 11

Yes

Question 12

A company has adopted model articles of association. Which of the following is required for it to vary class rights?
An agreement of the directors
An ordinary resolution of the relevant class
An alteration of the articles
A special resolution of the relevant class

Answer 12

a special resolution of the relevant class

Question 13

if a company makes a rights issue to members, how long do members have to accept the offer of 30 new shares once it is made?

Answer 13

21 Days