Loan Capital

For share capital, company repays profit as dividend. While for loan capital, company required to pay interest, even if ( ).

• some profit is made

• profit is made

• no profit is made

• no business

In regards to power to borrow, a company does not have to be capable of exercising all the functions of a body corporate and have the full capacity to carry on or undertake any business or activity.

• True

• False

Under the requirements of power to borrow according to Companies Act 2016, the Board should have all the powers necessary to manage, direct, and supervise the management of company.

• True

• False

Debenture is a written instrument or document acknowledging a debt and includes provisions regarding the repayment of principal and payment of interest ( ).

• at fluctuate rate

• at constant rate

• at floating rate

• at fixed rate

Which of the following case mentioned "a debenture includes any obligation, covenant, or acknowledgement of debt?"

• Bensa Sdn Bhd v Malayan Banking Bhd (1993)

• Levy v Abecorris Slate & Slab Co (1887)

• Salomon v A Salomon & Co Ltd (1896)

• Lee v Lee's Air Farming Ltd (1960)

( ) sets out the rights of debenture holder, and the rights and duties of the corporation and the trustee.

• Contract trust deeds

• Equity trust deeds

• Debenture trust deeds 

• Share trust deeds

Which type of debenture it is where the loan is raised by offering to the public via Bursa Malaysia?

• contract debenture

• public debenture

• single debenture

• partner debenture

"Debenture is a fixed loan and repayment will be due on a future date or on demand." Which right of debenture holders does it representing?

• Audited financial statement

• Oppression

• Take possession of assets charged

• Sue for repayment 

A receiver or receiver and manager may be appointed by debenture holder under Companies Act (2016).

• True

• False

A receiver or receiver and manager do not have the power to take control of the property, convert property into money, execute documents, lease or dispose the property under the Companies Act (2016).

• True

• False