A company cannot offer financial assistance to purchase its own shares unless
A) the purchased shares are used to repay a loan utilized to obtain the same shares
B) the company guarantees a loan obtained with the purpose of buying the company's own shares
C) the company lends the money to a third party in order for them to purchase the shares
D) the assistance is not given for the purchase of shares and is given in good faith in the interests of the company
Correct Answer:
Verified
Q1: A creditor would prefer to trade with
Q3: On winding up, which of the following
Q4: For the consequences of unlawful distributions the
Q5: What is the 'book value' of an
Q6: Which of the following is not considered
Q7: What is a dividend?
A) a payment made
Q8: Which of the following is considered a
Q9: A company may purchase its own shares
A)
Q10: Under s.641-644 Companies Act 2006, which of
Q11: The principle of capital maintenance can be
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents