Question Tag: Receiver Appointment

i) Definition of a Debenture:
A debenture is a written acknowledgment of indebtedness by a company setting out the terms and conditions of the loan (section 80 (2) of ACT 179). (2 marks)

ii) Appointment of a Receiver/Manager:
A receiver/manager in that context is appointed where the security of the debenture holder on floating charge becomes enforceable and the holder of the security, pursuant to the power in that behalf in the debenture or the deed securing the same, or where the company goes into liquidation (section 87 of ACT 179).
(4 marks)

iii) Dispensing with Annual General Meeting:
Where the auditors of the company and the members of the company entitled to attend and vote at an annual general meeting agree in writing that an annual general meeting shall be dispensed with in any year (section 149 of ACT 179). (2 marks)

iv) Persons Qualified to Receive Notices of General Meetings:

• Every member,
• Every person on whom the ownership of a share devolves by reason of that person being a legal personal representative or a trustee in bankruptcy of a member,
• Every director of the company,
• Every auditor for the time being of the company.
  (4 points for 8 marks)