Capital and the financing of companies

'BioGenetics PLC' issues 10,000 shares with a nominal value of £1 each. Because the company is highly successful, investors pay £5 per share. How must the £50,000 received be accounted for in the company's balance sheet?

A renewable energy company wants to vary the rights attached to its class of preference shares. Under the Companies Act 2006, which TWO of the following methods can legally be used to approve a variation of class rights (assuming the articles do not specify a different procedure)?

'AgriBotics Ltd' secures a bank loan using its fleet of autonomous tractors as collateral. The company is allowed to sell old tractors and buy new ones without asking the bank's permission, as long as it doesn't default on the loan. What type of charge has the bank most likely taken over the tractors?

What is the minimum allotted share capital required for a public limited company (PLC) under the Companies Act 2006?

In company law, which of the following best defines a 'debenture'?

Within how many days must a company register a new charge (such as a mortgage) with Companies House to ensure it is valid against a liquidator?

Section A In a private limited company with only one class of shares, the directors wish to allot new shares to raise capital. There are no restrictions in the company's articles of association. Do the directors need the prior authorization of the shareholders to allot these shares?

Section A A company declares and pays a dividend to its shareholders. It is later discovered that the company did not have sufficient distributable profits to cover the dividend. What is the legal consequence for a shareholder who received this unlawful dividend, assuming they knew or had reasonable grounds to believe it was unlawful?

Section A BankCorp lends £100,000 to a manufacturing company and takes a floating charge over the company's inventory. BankCorp fails to register the charge with the Registrar of Companies within the required 21-day period. What is the consequence of this failure to register?

Section A Which type of share typically carries a fixed rate of dividend that must be paid before any dividend is paid to other shareholders?

Section A In company law, what is a debenture?

Section A Which TWO of the following statements regarding the allotment of shares in a private limited company are correct?

Section A How are 'distributable profits' defined for the purpose of a private company declaring a lawful dividend?

Section A Which of the following statements correctly describes a key difference between a fixed charge and a floating charge?

Section A Which of the following best defines a 'debenture'?

Section B - Scenario 5 AeroLogistics Ltd is a freight service firm. They have a loan from BankCorp secured by a floating charge over all the company's assets. AeroLogistics misses three consecutive loan repayments. BankCorp issues a formal demand for payment, which is ignored. BankCorp then formally notifies AeroLogistics that they are enforcing their security. What is the legal effect of BankCorp enforcing the security on the floating charge?