Corporate law coursework
LONDON SOUTH BANK UNIVERSITY BA Accounting & Finance 2008-2009 Year 2 Corporate Law coursework Unit Reference Number: November 2008 First name: Surname: Student number: Group number: Seminar tutor: Contents .Introduction 3 2. a) The purposes for which the share premium account and the revaluation reserves can be used. 4 3. b) Explain the reasons for a public company purchasing or redeeming its own shares. 7 4. c) Assume that the directors wish to redeem all the redeemable shares for £15,000 (the redeemable shares were issued at a premium of £ 2,500) and for the purpose of the redemption issue 5,000 shares of £1 each for £ 6,500, what conditions must be satisfied before the premium to be paid by the company on the redemption issue of the shares can be written off to the share premium account? 1 5. d) Can the entire premium be written off to the share premium account? 3 6. e) Show the revised balance sheet after the shares are redeemed. 4 7. f) If Mirza plc wishes to redenominate the nominal value of some of its shares from sterling to euros, the steps it must take to effect the change. 6 8. References 8 Introduction As the financial accountant employed by Mirza plc., my role is, as requested, to advice the directors of Mirza plc. regarding the purposes of company's reserves, redemption, acquisition of company's own shares, redenomination