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Help needed with Legal project for College

  • 23-09-2008 11:22am
    #1
    SteJay
    Registered Users, Registered Users 2 Posts: 111 ✭✭


    I recently got given a Company Law project in College and have no idea where to start.
    We were told to download the memorandum and articles of association of a company limited by shares.I downloaded Dunnes Stores' ones. Your company then applies for a 3m euro loan and must raise 1m by way of shares. I need to write a report on why the company would or would not get the loan based on the clauses etc in the company arts and memo.
    Does anyone have any idea what sort of clauses etc I should be looking for?
    Any help is much appreciated
    Cheers


Comments

  • #2
    Tom Young
    Legal Moderators, Society & Culture Moderators Posts: 4,338 Mod ✭✭✭✭Tom Young


    This is not very difficult. You should get a copy of either Forde or Keane on Company Law and read the sections on shares in the first instance then on capital and capital maintenance.

    Section's 60 - 64 of the principal act will be of use [1963]
    Section's 206 - 209 of the 1990 Act.

    The second strand might/may involve reading a chapter on Company Borrowing and Security this will be a specific power listed in the company's constitution. You might be looking at/for model article 79 of Table A if that the type of organisation you've chosen to look at.

    Ciao,
    Tom

    PS: This is going to require independent thought! :)


  • #3
    SteJay
    Registered Users, Registered Users 2 Posts: 111 ✭✭SteJay


    That exactly what I needed Tom I know I need to do it independently I was just unsure as to wheter I could learn enough from literature or did I need to go interview a Bank Manager or something.

    Thanks very much for your help!


  • #4
    Maximilian
    Legal Moderators, Society & Culture Moderators Posts: 5,400 Mod ✭✭✭✭Maximilian


    A typical Memo & Arts is fairly easy to understand. Apart from what Tom said, You need to just read through it and see if there is anything there that would affect it. Look for a power to borrow, look for a power to give security for a loan by way of mortgage, debenture etc.

    If you have Dunnes Stores' ones, I doubt there is too much impeding it from borrowing.


  • #5
    Tom Young
    Legal Moderators, Society & Culture Moderators Posts: 4,338 Mod ✭✭✭✭Tom Young


    Yep, most companies have what are know as 'Bell House' clauses which purport to allow the company do pretty much anything - check that in your reading too! Bell Houses Limited v City Wall Porperties Limited [1966] 2 QB 656, CA

    I will admit to having to check what the Bell what-you-call-it case was all about! ;)

    Tom


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