CFAB: COMPANY FINANCE

As a general rule, is a company able to allot shares: at a premium?

• A YES

• B NO

As a general rule, is a company able to allot shares: at discount?

• Yes

• No

Jill and Naomi plan to set up Indigo Ltd, a private company limited by shares. They have some concerns over the payment for shares and ask you whether the following are true:

The shares taken by the company’s original subscribers must be paid for in cash.

• True

• False

Jill and Naomi plan to set up Indigo Ltd, a private company limited by shares. They have some concerns over the payment for shares and ask you whether the following are true:

Any shares subsequently allotted must be paid up at least as to one-quarter of the nominal value together with the whole of any share premium payable in respect of them.

• True

• False

Anita wishes to purchase 100 shares with a nominal value of £1 each in Lovages plc. By way of payment for those shares, can she: agree to act as the company’s legal adviser for a period of three years?

• Yes

• No

Anita wishes to purchase 100 shares with a nominal value of £1 each in Lovages plc.

Can she: pay 20p per share now, with the remaining 80p per share to be paid at a later date?

• Yes

• No

In relation to the transfer of shares by electronic means: Requirements Does the CREST transfer system operate in respect of all shares?

• Yes

• No

In relation to the transfer of shares by electronic means:

Are companies obliged to permit paperless transfers of shares?

• Yes

• No

Unico Ltd is a private company limited by shares with 100 shares of 50p each and 100 shares of £1 each.

Is Unico Ltd able to: subdivide each of its £1 shares into 10 10p shares?

• Yes

• No

Unico Ltd is a private company limited by shares with 100 shares of 50p each and 100 shares of £1 each. Is Unico Ltd able to: consolidate pairs of 50p shares into £1 shares?

• Yes

• No