LML4806 - Company Law EXAM WITH COMPLETE SOLUTIONS

LML4806 - Company Law EXAM WITH COMPLETE SOLUTIONS What info must be contained in a compromise proposal? - answer- 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 - answer- 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 - answer- 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 - answer- 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 d