Reference no: EM133186538

ANSWER ALL QUESTIONS

1. Distinguish between 'partnership property' and 'property of partners'. Why is the distinction important?

2. Explain the content and effect of the Articles of Incorporation.

3. Summarize the basic duties owed to the company by promoters.

4. Distinguish FIVE DIFFERENCES between private and public company.

5. In January 2000, Bobby set up in business as a sole trader supplying pastries to local hotels. The building was located on leased premises. In January 2006 he formed Bobby's Pastry Limited and in the consideration of the transfer of its assets, including the leased premises to the company, he was issued with 20,000 $1 shares in Bobby's Pastry Limited. Bobby was the sole shareholder and director. He signed a contract of employment with the company. Bobby also loan the company $55,000.00 in December 2006 to purchase new equipment. The loan was secured by floating charge over the company's assets. In November 2007 Bobby was injured in a fire accident in the kitchen and the building was badly burnt. The insurance policy on the building and contents was in Bobby's name which was taken out in January 2000.

Please advise Bobby:

on the validity of the one man company his rights in claiming insurance benefits
his claim against the company for compensation regarding his injuries; and his rights in claiming as a secured creditor in respect of the loan.

6. Distinguish between the usual rights of ordinary and preference shares. Why are preference shares described as a hybrid between debt and equity?

7. To what extent, if at all does s 19 of the Companies Act 2004 give a shareholder enforceable contractual rights against a company.