- 16 Marks
Question
State FOUR (4) transactions for which Directors of Limited Liability Companies require an Ordinary Resolution approval.
(16 marks)
Answer
Directors of Limited Liability Companies require an Ordinary Resolution approval for the following transactions:
- Disposal of Substantial Assets:
- When the company proposes to dispose of the whole or substantial portions of its undertaking or assets.
(Section 202(1a) of Act 179)
- When the company proposes to dispose of the whole or substantial portions of its undertaking or assets.
- Issuance of New or Unused Shares:
- When the company proposes to issue new or unused shares (other than treasury shares) in the company.
(Section 202(1b))
- When the company proposes to issue new or unused shares (other than treasury shares) in the company.
- Charitable Contributions:
- When the company proposes to make voluntary contributions to charitable or other funds in excess of the greater of a prescribed amount or 2% of the income surplus of the preceding financial year.
(Section 202(1c))
- When the company proposes to make voluntary contributions to charitable or other funds in excess of the greater of a prescribed amount or 2% of the income surplus of the preceding financial year.
- Borrowing or Charging Assets:
- When the company proposes to exercise its powers to borrow money or charge any of its assets, where the monies to be borrowed or secured will exceed the stated capital for the time being of the company.
(Section 202(5))
- When the company proposes to exercise its powers to borrow money or charge any of its assets, where the monies to be borrowed or secured will exceed the stated capital for the time being of the company.
(4 points for 4 marks each = 16 marks)
- Topic: Company Meetings and Resolutions
- Series: MAY 2020
- Uploader: Dotse