Question 1

Standard Limited issued a debenture to Finance Bank many years ago. The debenture was described as a fixed and floating charge over all the assets of the company. However due to inadvertence, the charge was not registered within time. The company is now in liquidation and the loan is in arrears. Finance Bank seeks your legal advice on whether it can rely on the charge to prove its claim in liquidation proceedings of the company. Advice the bank(5 marks)

Question 2

Ronald Dola is a director at Valleys Limited. He recently made a procurement decision that resulted into heavy losses of the company. He has also missed all the board meetings and committee meetings that he was expected to attend. He further delegated his work to his junior Mark, who ended up making grave financial mistake despite being the finance manager for the company, resulting to losses. In light of the above facts, analyze the duties of a director in a company and advise valleys Limited on its legal rights if any against Ronald Dola(10 marks)