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A person who lends money to a company does so to the artificial person...such a lender does so on the implied representation that the funds
A person who lends money to a company does so to the artificial person...such a lender does so on the implied representation that the funds would be utilized for the legitimate business of the company and is therefore entitled to insist that the company shall not return its assets or capital to the shareholders".
Discuss the rules relating to the raising and maintenance of a company's share capital in light of the above statement.
We are to explain using cases.
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