SCHOOL OF BUSINESS
2008-2009(SEMESTER1) EXAMINATION
Company Law
1) (a)
(b)
2) (a)
"A floating charge has considerable disadvantages from the view point of
the creditor". Discuss.
(b)
Kong Ltd. created a floating charge over all its assets in favour of Tang
Bank, which had provided a substantial loan to the company. This charge
was duly registered. Four months later Kong Ltd. created a fixed charge over
its factory in favour of Hung Ltd.
Before taking this charge, Hung Ltd. had made a search at the Companies
Registry and discovered the existence of the floating charge in favour of
Tang Bank.
Six months after the charge in favour of Hung Ltd. was created, Kong Ltd.
went into liquidation.
Explain the rules relating to priority of charges and state which charge is
likely to have priority.
3) (a)
(b)
(c)
4) (a)
(b)
(b)
(c)
(d)
6) (a)
(b)
Ho, Lo, Kam and Tung are partners in a firm of painters and decorators.
Advise the respective partners in the following unrelated situations;
(i)
Ho supplies his son, Wing, with details of customers of the firm. Wing
has managed to obtain some painting and re-decoration work as a
consequence of this.
(ii)
7. (a)
(b)
Doday Ltd., a Hong Kong registered company, has the following provisions
within its Articles of Association:
(i)
"James Wong shall be appointed as the company's solicitor for life and
shall receive annual remuneration of $1 million."
(ii)
(iii) "A person must hold at least 1OOO ordinary shares in the company to
qualify as a director of the company."
(iv) "Directors may be removed from office by a special resolution of
general meeting."
Advise on the legality of these articles.
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