Sinclair Plumbing Supplies Limited (“Sinclairs”) was registered in 2005 without a
constitution. The three shareholders are David who owns 125 shares, Cecily 75 shares
and Royce 50 shares. David and Cecily are the directors on the Board of Sinclairs.
It has been decided that Sinclairs will borrow $20,000 from David, for a three year term,
to enable capital improvements to be made. The interest rate will be 7.25% per annum.
It has been agreed that the funds will be made available by way of equity as the loan
agreement between Sinclairs and the bank sets a limit on Sinclairs’ debt to equity ratio,
and any additional debt would mean that Sinclairs would breach the loan agreement.
REQUIRED:
Advise Sinclairs on how the $20,000 could be advanced to Sinclairs by way of equity for
the three years.作者: akabb1321 时间: 2009-10-15 23:36:26