问答题
In the context of company law: (a) explain the ways in which a company may raise capital by way of equity and by way of debt; and (3 marks)
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Desmond bought a condominium unit in Siglap on the basis that the developers had stated in their promotional brochures that it was ‘minutes to the city’ and that there would be a basement car park. Desmond works in the city and he wanted a short commute to work. He also admitted he had bought the condominium unit because he thought that it was a good investment as it was in a prime residential district on the east coast. However, after he bought the condominium unit, he discovered that it would take him more than half an hour to drive to work due to the morning traffi c congestion and furthermore, the developers had decided not to build the underground car park as it would increase their building cost. He wants to sue the developer for misrepresentation.Required:Advise Desmond whether he will succeed in suing the developers for misrepresentation. (10 marks)
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Cuppycakes Pte Ltd (Cuppycakes) is a confectionary business. In January 2009, the board of directors took a loan from Future Bank to set up a new retail outlet in Jurong. To secure the loan, Future Bank took a fl oating charge over the undertaking of Cuppycakes. Cuppycakes is now in the process of winding up. The main claims against Cuppycakes are:(i) a S1·5 million mortgage by Present Bank over Cuppycakes’ factory in Bedok;(ii) $80,000 in respect of a debt due to a supplier;(iii) $100,000 unpaid taxes owing to the Inland Revenue Authority of Singapore; and(iv) Future Bank’s fl oating charge.Future Bank has realised that the fl oating charge over the undertaking of Cuppycakes was never registered with the Accounting and Corporate Regulation Authority.Required:(a) Discuss whether Future Bank’s fl oating charge is enforceable. (5 marks)(b) Explain the order of priority of payment in respect of the above claims in Cuppycakes’ winding up. (5 marks)
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