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Helpful Examination paper tests
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LML4806 Latest Packed Exams
What info must be contained in a compromise proposal?
ans>>- any proposals made "informally" by a company creditor
- details of all assets and creditors
- treatment of ongoing contracts
- order of preference, proceeds apply
- conditions precedent
- number of employees
- t&c of employment
- projected balance sheet
- income and expenses for 3 years
- certificate by authorized director stating info is factual, accurate, up to date
When will compromise be adopted and binding
,ans>>- S155(6) adopted if supported by a majority in number representing at least 75% in
value of creditors
- A company may apply to court for an order approving the proposal
- suggests it is not necessary for a company to obtain sanction of High Court before a
compromise becomes binding on dissenting creditors
Record date
ans>>- determines certain rights of shareholders
- S59(1) a company may set a record date for purpose of determining which shareholders are
entitled to receive the notice, vote etc
- latest date by which the company is required to give notice to SH of the meeting, or date of
action or event
- board fail to set date, date is last day on which notice should be given to SH of SH meeting
(public = 15 bdays; private = 10 bdays)
Compromise
ans>>- agreement or arrangement or restructuring of claims between a company and its
creditors in terms of which the creditors agree to accept less than their full claims against
the company
- binding on all companies creditors
Compromise proposal is divided into three parts
ans>>- background
- the proposal itself
,- assumptions and conditions
How is proposal of compromise effected?
ans>>- by delivery of a copy of the proposal
- and notice of a meeting to consider the proposal to the Companies Commission and to
every creditor of the company or every member of the relevant class of creditors whose
name and address is known or can reasonable be obtained by the company
When is compromise proposal adopted
ans>>- when supported by a majority in number
- representing at least 75% in value of creditors present & voting (or proxy)
If a compromise is approved by court?
ans>>- company must file a copy of the order with Companies Commission within 5
business days
- copy must be attache to each copy of Company MOI
- order of court is final and binding on all creditors or class of creditors from the date on
which a copy of the order is filed
Company Secretary
ans>>- public & state owned company are obliged to appoint one
- company must maintain record of company secretaries
- secretary is chief administration officer
- should be someone with knowledge of and experience in relevant legislation
, - accountable to board of directors
- duties - guide directors on duties; powers & responsibilities; make directors aware of law
- board may adopt a resolution to remove company secretary
How do you hold a SH meeting w/o everyone present
ans>>PROXY
- S58
- appointment must be in writing & signed
- speak & vote on behalf of SH
WRITTEN RESOLUTION
- S60
- must be submitted to SH for consideration
- adopted by same % of support as is required to pass the res at a meeting
- SH must vote on res within 20 business days after res was submitted to them
- company must deliver a statement to SH describing the results of vote within 10 business
days after company adopted written resolution
Delinquency
ans>>- S162(1)
- person grossly abused the position of director
- took personal advantage of info or an opportunity contrary to S76(2)(a)
- intentionally or by gross negligence inflicted harm upon the company or subsidiary of
company
Helpful Examination paper tests
“Come all for this greatness”
...100% Correct Ans...
***Determined to success***
LML4806 Latest Packed Exams
What info must be contained in a compromise proposal?
ans>>- any proposals made "informally" by a company creditor
- details of all assets and creditors
- treatment of ongoing contracts
- order of preference, proceeds apply
- conditions precedent
- number of employees
- t&c of employment
- projected balance sheet
- income and expenses for 3 years
- certificate by authorized director stating info is factual, accurate, up to date
When will compromise be adopted and binding
,ans>>- S155(6) adopted if supported by a majority in number representing at least 75% in
value of creditors
- A company may apply to court for an order approving the proposal
- suggests it is not necessary for a company to obtain sanction of High Court before a
compromise becomes binding on dissenting creditors
Record date
ans>>- determines certain rights of shareholders
- S59(1) a company may set a record date for purpose of determining which shareholders are
entitled to receive the notice, vote etc
- latest date by which the company is required to give notice to SH of the meeting, or date of
action or event
- board fail to set date, date is last day on which notice should be given to SH of SH meeting
(public = 15 bdays; private = 10 bdays)
Compromise
ans>>- agreement or arrangement or restructuring of claims between a company and its
creditors in terms of which the creditors agree to accept less than their full claims against
the company
- binding on all companies creditors
Compromise proposal is divided into three parts
ans>>- background
- the proposal itself
,- assumptions and conditions
How is proposal of compromise effected?
ans>>- by delivery of a copy of the proposal
- and notice of a meeting to consider the proposal to the Companies Commission and to
every creditor of the company or every member of the relevant class of creditors whose
name and address is known or can reasonable be obtained by the company
When is compromise proposal adopted
ans>>- when supported by a majority in number
- representing at least 75% in value of creditors present & voting (or proxy)
If a compromise is approved by court?
ans>>- company must file a copy of the order with Companies Commission within 5
business days
- copy must be attache to each copy of Company MOI
- order of court is final and binding on all creditors or class of creditors from the date on
which a copy of the order is filed
Company Secretary
ans>>- public & state owned company are obliged to appoint one
- company must maintain record of company secretaries
- secretary is chief administration officer
- should be someone with knowledge of and experience in relevant legislation
, - accountable to board of directors
- duties - guide directors on duties; powers & responsibilities; make directors aware of law
- board may adopt a resolution to remove company secretary
How do you hold a SH meeting w/o everyone present
ans>>PROXY
- S58
- appointment must be in writing & signed
- speak & vote on behalf of SH
WRITTEN RESOLUTION
- S60
- must be submitted to SH for consideration
- adopted by same % of support as is required to pass the res at a meeting
- SH must vote on res within 20 business days after res was submitted to them
- company must deliver a statement to SH describing the results of vote within 10 business
days after company adopted written resolution
Delinquency
ans>>- S162(1)
- person grossly abused the position of director
- took personal advantage of info or an opportunity contrary to S76(2)(a)
- intentionally or by gross negligence inflicted harm upon the company or subsidiary of
company
