a) Share certificates are required to be issued to shareholders by a company.
List the particulars that are required, by law, to be on the certificate. (6 marks)
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- The number and class of shares held by the shareholder and the definitive numbers thereof, if any.
- The amount paid on such shares and the amount, if any, remaining unpaid.
- The name and address of the registered holder.
b) Certain transactions in shares are statutorily prohibited by the provisions of the Companies Act, 1963, Act 179, List FOUR of the said transactions. (4 marks)
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- Alter the number of its shares or the amount remaining payable thereon, except under certain conditions.
- Release any shareholder or former shareholders from any liability on the shares.
- Provide any financial assistance, directly or indirectly for the subscription or purchase of its shares, or the shares, of its holding company.
- Acquire by way of purchase or otherwise, directly or through nominees, any of its issued shares or any shares of its holding company.
c) State TWO effects of a breach of the provisions prohibiting these transactions. (4 marks)
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- The purported alteration or release become void and renders every officer of the company who is in default liable to a fine not exceeding one hundred Ghana cedis (GH¢ 100.00). 2 marks.
- As regards a breach involving provision of financial assistance and acquisition by way of a purchase or otherwise, the transaction becomes voidable by the company and any payment made by the company in respect thereof becomes immediately repayable with interest at the rate of 5% per annum or such higher rate as the court may deem fit to order.