The concept of capital maintenance is geared substantially towards the protection of creditors of the company who
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The concept of capital maintenance is geared substantially towards the protection of creditors of the company who in the eyes of the law, have an interest in the paid up share capital and other assets of the company. A company is prohibited from reducing its issued share capital. Thus, a company is prohibited from giving financial assistance as one of the rule to maintain the companys capital. Based on the statement above critically discuss THREE (3) transactions that constitute financial assistance. Support your answer with relevant statutory provisions of the Companies Act 2016 and decided cases.
Related Book For
Financial Accounting Theory and Analysis Text and Cases
ISBN: 978-1118582794
11th edition
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey
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