Question
Rennie Limited (the Company) plans to borrow HK$ 300 million from a local bank in order to implement its strategic plan by creating charges on
Rennie Limited (the "Company") plans to borrow HK$ 300 million from a local bank in order to implement its strategic plan by creating charges on the following assets of the Company:
i) A piece of land situated in the Mainland;
ii) The monthly leasing income receivable in respect of leasing of plant and machinery;
iii) The Company's fixed deposit placed with a local bank;
iv) The shares of the Company's subsidiary;
v) The fire insurance policy on the office building.
Required:
Advise to the board of Rennie Limited whether the Company can create charges of the above assets and whether the charges are required to register with the Companies Registry under the Companies Ordinance.
(5 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started