Question
Joanne is a shareholder of Queensland Coal Ltd. She purchased 100 shares worth $10 each. Joanne's best friend Natalie owns $1,000 in debentures issued by
Joanne is a shareholder of Queensland Coal Ltd. She purchased 100 shares worth $10 each. Joanne's best friend Natalie owns $1,000 in debentures issued by Queensland Coal Ltd. Which one or more of the following statements are false and which one is true and why?
A. Because Queensland Coal Ltd is a limited liability company, Joanne's shares can never be traded on a stock exchange.
B. If Queensland Coal Ltd becomes insolvent, Natalie's chance of getting her money back is the same as Joanne's.
C. Both Natalie and Joanne have provided part of the capital of Queensland Coal Ltd.
D. Joanne's liability is limited to the amount (if any) unpaid on her shares in Queensland Coal Ltd.
E. Joanne is a member of Queensland Coal Ltd.
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