company law

1. State five differences between debentures and shares. 2. Prudent Bank had a charge over ABC Company Ltd's entire property expressed as a fixed and specific charge. Another term of the charge allowed ABC Company to continue making sales from stock in the ordinary course of business until notified in writing by the bank to stop doing so. Advise Prudent Bank Ltd. on the nature of the charge. 3. State the differences between a fixed and a floating charge. Which of the two types of charges is preferable and why? 4. Acros Ltd. created a floating charge over all its assets in favour of Edward which was expressed to become fixed if Acros Ltd. purported to create a later floating charge over some or all of the same assets. The charge was validly registered. Two months later Acros Ltd. created a second floating charge over its stock in trade in favour of Michael and in accordance with the terms of the charge, Michael has appointed a receiver. Michaels charge was also validly registered. a. Advise the receiver as to his position in relation to the earlier floating charge and the other creditors of the company. b. Would your advice be different if Michael's charge was a fixed charge? c. Would your advise be different if Edward's charge was not registered and why? 5. "A fixed charge carries no business risk for the charge holder". State reasons for your agreement or disagreement with his statement 1. State five differences between debentures and shares. 2. Prudent Bank had a charge over ABC Company Ltd's entire property expressed as a fixed and specific charge. Another term of the charge allowed ABC Company to continue making sales from stock in the ordinary course of business until notified in writing by the bank to stop doing so. Advise Prudent Bank Ltd. on the nature of the charge. 3. State the differences between a fixed and a floating charge. Which of the two types of charges is preferable and why? 4. Acros Ltd. created a floating charge over all its assets in favour of Edward which was expressed to become fixed if Acros Ltd. purported to create a later floating charge over some or all of the same assets. The charge was validly registered. Two months later Acros Ltd. created a second floating charge over its stock in trade in favour of Michael and in accordance with the terms of the charge, Michael has appointed a receiver. Michaels charge was also validly registered. a. Advise the receiver as to his position in relation to the earlier floating charge and the other creditors of the company. b. Would your advice be different if Michael's charge was a fixed charge? c. Would your advise be different if Edward's charge was not registered and why? 5. "A fixed charge carries no business risk for the charge holder". State reasons for your agreement or disagreement with his statement