G Ltd has both 10% preference and ordinary shares. The company's articles of association provide that...

 

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G Ltd has both 10% preference and ordinary shares. The company's articles of association provide that preference shareholders have the right to appoint a consultant who can sit in on board meetings and act as a conduit for the views of the preference shareholders. The company secretary is asking for clarification on two key questions here. Firstly, is the right of the preference shareholders to receive a 10% dividend a class right? Secondly, is the right of the preference shareholders to appoint a consultant a class right? (a) Yes and Yes. (b) Yes and No. (c) No and No. (d) No and Yes. Which of the following statements are incorrect? I. II. III. IV. V. A private company cannot offer its securities to the public. Only a private company can pass written resolutions. Public and private companies must have at least two directors. A private limited company does not need to hold an annual general meeting. A private limited company may only be limited by shares. Give one correct answer. (a) I., II. and IV. only (b) I. and II. only (C) III. and V. only (d) II., III. and V. only G Ltd has both 10% preference and ordinary shares. The company's articles of association provide that preference shareholders have the right to appoint a consultant who can sit in on board meetings and act as a conduit for the views of the preference shareholders. The company secretary is asking for clarification on two key questions here. Firstly, is the right of the preference shareholders to receive a 10% dividend a class right? Secondly, is the right of the preference shareholders to appoint a consultant a class right? (a) Yes and Yes. (b) Yes and No. (c) No and No. (d) No and Yes. Which of the following statements are incorrect? I. II. III. IV. V. A private company cannot offer its securities to the public. Only a private company can pass written resolutions. Public and private companies must have at least two directors. A private limited company does not need to hold an annual general meeting. A private limited company may only be limited by shares. Give one correct answer. (a) I., II. and IV. only (b) I. and II. only (C) III. and V. only (d) II., III. and V. only

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1 Answer is b The right of the preference shareholders to receive a 10 dividend is a class right but ... View the full answer