1)Joseph is the sole trustee of a trust fund of $1,000,000. By the terms of the trust, he is under a duty to invest the money 'as if he were absolutely entitled to the assets of the trust'. Ronald, an investment broker, approaches him, who offers to pay him $100,000 'no questions asked' if he invests the trust fund with him. Joseph agrees and is paid the $100,000. Ronald invests the $1,000,000 on the stock market, eventually losing $700,000. Joseph is now insolvent with only $300,000 remaining, and Ronald has fled the country. Advise the beneficiaries of the trust. (10 marks)

2a) Critically discuss the view that preference shares are best described as debt rather than equity. (5 marks)

b) Examine the difference between public and private companies. (5 marks)

3) Critically discuss why a Company may list on a local stock exchange. Select a company on the Caribbean Stock Exchange and outline if they gained benefits from public listing. ( 10 marks)

4) The articles of Spades Ltd. Provide, inter alia:

i) Any shareholder appointed to the position of managing director shall hold the position for life.

ii)Any shareholder who at any time wishes to transfer any or all of his shares shall first offer them to existing shareholders of the company who shall be obliged to purchase such shares at the original purchase price".

In September, Karen, a shareholder, was appointed managing director of Spades Limited. The Board of Directors has decided to dismiss Karen immediately because of her poor performance on the job to date.

Joseph, a shareholder, wishes to sell his shares and has received an offer from Peter, who is not a shareholder, to buy shares well above the original price. Melissa, an existing shareholder, is adamant that she should be allowed to purchase Joseph's shares at the original price. Joseph is the only shareholder who currently holds less than 5% of the shares of Spades Limited. Advise Karen and Melissa. (10 marks)