BC Law Ch10 Corporate Finance & Charges

A shareholder owns the company's property.

• True

• False

There are two main types of shares: ordinary shares and _ shares.

(a)  

Which of the following is a characteristic of an ordinary share?

• Such shares have preferential rights in the payment of dividends.

• Such shares have priority in the return of capital.

• Such shares usually carry voting rights.

• Such shares may be classified as a debenture.

Which of the following are ways to acquire company shares?

• Buy shares from the company auditor who holds the company shares for audit purposes.

• Buy shares from an existing shareholder of the company.

• Buy shares from the company liquidator after the company is wound up.

• Buy shares directly from the company when it issues shares.

One way for a company to raise funds is to allow existing shareholders to sell their shares to other parties.

• True

• False

Debentures that may be transferred by delivery of the document are known as _ debentures.

(a)  

Which of the following is not a purpose of a Prospectus?

• To provide information to an investor.

• To advise an investor.

• To disclose relevant information that will influence investment decisions.

• To comply with the Securities and Futures Act ("SFA").

The requirements governing when a Prospectus must be issued applies to both public and private companies.

• True

• False

Select the relevant grounds to which the Monetary Authority of Singapore ("MAS") may refuse to register a prospectus.

• Contains misleading information.

• Fails to include any information that should be included.

• Fails to comply with any applicable law or legal requirement.

• Fails to provide sufficient returns on investment.

Select the relevant consequences that may follow if the prospectus requirements are not followed.

• Criminal liability only.

• Civil liability for compensation only.

• Both criminal liability and civil liability for compensation.

• No liability.