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please do part D in 10 minutes will upvote Referred/Deferred Arthur and Tony are the sole shareholders of Limpopo Ltd. They both have 50% of
please do part D in 10 minutes will upvote
Referred/Deferred Arthur and Tony are the sole shareholders of Limpopo Ltd. They both have 50% of the shares. a) Tony wants his daughter, Chloe, to join the business, and suggests that he and Arthur each sell Chloe some of their shares. Advise Arthur as to whether there would be a disadvantage to him selling Chloe some of his shares. b) The Articles of Association of Limpopo Ltd. say that Tony is to be a director of the company for life. Explain whether the provision will be enforceable. c) Arthur has failed to renew the Company insurance policy, breaching the Employers' Liability (Compulsory Insurance) Act 1969. Consider whether the company would be guilty of a crime, and whether an employee who was injured at work could claim compensation from Arthur. d) Tony is the director responsible for Health and Safety in the company. He is injured when equipment which was not serviced collapsed on him. Advise Tony whether he will be able to claim compensation from the company. e) Limpopo Ltd. has borrowed 50,000 from Bigbank secured by a floating charge over the business and all its assets on 1st March 2017, and then borrowed a further 20,000 from Megabank secured by what the documents say is a fixed charge over the book debts on 1st April 2017. Helen is owed 500 for deliveries she has done for Limpopo. Diggle Ltd is owed 1,000 for materials supplied to Limpopo Ltd. Limpopo Ltd. is now in insolvent liquidation. One week before it went into liquidation Arthur made a payment from the company of 20,000 to his sister. Arthur has not explained the purpose of the payment. Explain how the liquidator might distribute the assets of the company. How might your answer differ if Diggle Ltd had a retention of title clause on materials it suppliedStep by Step Solution
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