Day 5. Capital And The Financing Of Companies
E2. Loan Capital
a) Define companies’ borrowing powers.
b) Explain the meaning of loan capital and debenture.
c) Distinguish loan capital from share capital, and explain the different rights held by shareholders and debenture holders.
d) Explain the concept of a company charge and distinguish between fixed and floating charges.
e) Describe the need and the procedure for registering company charges.