Insurance Contracts and Debenture Holders' Rights
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Questions and Answers

What is one of the advantages of quotation to the existing shareholders?

  • Ability to use shares for settlement of mergers and acquisition
  • Low risk perception
  • Access to more funds
  • Immediate realization of cash through sale of shares (correct)

Which of the following is a right of an investor?

  • Right to appoint a proxy to attend meetings (correct)
  • Right to access the company's confidential information
  • Right to override the company's management decisions
  • Right to receive a guaranteed dividend

What is one of the disadvantages of quotation to a company?

  • Ability to use shares for settlement of mergers and acquisition
  • Loss of control to existing shareholders (correct)
  • Access to more funds
  • Increased transparency through filing of returns to SEC

What is an advantage of quotation in terms of merger and acquisition?

<p>Ability to use shares for settlement of mergers and acquisition (C)</p> Signup and view all the answers

What is a right of shareholders in relation to company meetings?

<p>Right to attend, vote, and speak at meetings (B)</p> Signup and view all the answers

Which of the following is NOT a right of an investor?

<p>Right to access the company's confidential information (C)</p> Signup and view all the answers

What does the Protection Fund comprise of?

<p>All claims including cost allowed by the Board, and legal expenses incurred in investigating or defending claims (A)</p> Signup and view all the answers

What is not a right of a debenture holder?

<p>Right to vote at shareholder meetings (A)</p> Signup and view all the answers

What is an example of an expense incurred in the administration of the Protection Fund?

<p>Staff salaries and office rent (A)</p> Signup and view all the answers

What happens to a debenture holder in case of a winding up?

<p>They have the right to be settled before any other stakeholder (D)</p> Signup and view all the answers

What is a condition for a debenture holder to take over a particular property of the company?

<p>If the company is in default (D)</p> Signup and view all the answers

What is a type of charge that allows a debenture holder to take over any property of the company?

<p>Floating charge (B)</p> Signup and view all the answers

What is one of the rights of a shareholder in a merger and acquisition?

<p>Right to offer their shares for sale (C)</p> Signup and view all the answers

What is the purpose of the Protection Fund?

<p>To recover money from defaulting companies (A)</p> Signup and view all the answers

What is a right of a shareholder in a company?

<p>Right to seek redress when their right is being violated (D)</p> Signup and view all the answers

What is a type of right that protects shareholders during a merger or acquisition?

<p>Right to adequate information (C)</p> Signup and view all the answers

What is a right of a shareholder in a company?

<p>Right to table a proposal or ask a question of a director (C)</p> Signup and view all the answers

What is a right of a shareholder in a merger and acquisition?

<p>Right to have a say in the merger or acquisition (B)</p> Signup and view all the answers

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