Company Law 1 - University of Wolverhampton

i loan money to John, who has been co-opted to the company’sboard of directors, to purchase qualification shares in the company;ii loan money to its employees to enable them to purchase sharesin the company’s employee share scheme;iii loan money to its employees and directors to enable them to purchase the company’s shares.Advise the directors.c Outline the procedures when a shareholder in a private company wishes to:i transfer part of his fully paid shareholding in the company to a third party;ii transfer all of his fully paid shareholding in the company to a third party.(Wolverhampton LLB by Distance Learning, January 2001, Question 1.)2 a Distinguish between the transfer and transmission of shares. b Georgina is considering an investmentin Transcendo plc, whose ordinary and preference shares are quoted on the Stock Exchange.Advise her as to the possible advantages or disadvantages in purchasing either of these types ofshares.c Maintenance of a company’s share capital is one of the fundamental principles of company law.Explain how the provisions of the Companies Act 1985 helps to achieve this objective in respectof:i reduction of capital (s135);ii serious loss of capital (s142).(Wolverhampton LLB by Distance Learning, May 2001, Question 1.)