Lecture 9

Question 1

What 3 things does a small company have?

Answer 1

1. Annual turnover shouldn’t be more than 10.2 million
2. Balance sheet should not be more than 1.5 million
3. There shouldn’t be more than 50 employees.

Question 2

What is 3 things does medium compnay need to have

Answer 2

1. Annual turnover should not be more than 36 million
2. Balacne sheet should not be more than 18 million
3. Number of employees should not be more than 250 employees.

Question 3

What is debenture?+ two types

What is two types share capital?

Answer 3

Debenture = loan. fixed or floating

Share capital =
Ordinary shares = more risky
Preference shares = guaranteed money back.

Question 4

What is distributed reserves?

What is undistrubted reserves?

Answer 4

Distributive reserves = re + profits

Undistrubuted = reval reserve + capital reserve

Question 5

What is voting rights?

What is dividends rights?

What is superplus rights?

Explain if it was with preference shares or ordinary shares

Answer 5

Voting rights
- preference = no
- ordinary = yes

Dividend
- preference = yes
- ordinary = no

Surplus
Preference = capital returned
Ordinary = yes

Question 6

What is consquences of unlawful dividends?

Answer 6

They can recover from
1. Shareholders
2. Directors
3. Auditors

Question 7

What is fixed charge?

What is floating charge?

Why do you register the fixed and floating charge?

Answer 7

Fixed charge = legal or equitable moratage on a specific asset.

Floating charge = e.g inventory, trade receivables
CAN NOT BE CREATED BY PARTNERSHIP

• you have to register within 21 days if you dont you will be fine and the charge