Corporate Finance Lecture Notes

A set of vocabulary-style flashcards covering the basics of corporate finance, solvency and liquidity tests, specific legal sections, and shareholder rights based on the lecture by Dr Y Basson.

Corporate Finance

The study of sources of money for a company to conduct its business, which includes share capital, debt, investments into and by the company, and profit.

Solvency test

A financial assessment to determine if a company's assets exceed its liabilities.

Liquidity test

A financial assessment to determine if a company can pay its debts as they become due.

Section 13

The section of the law relevant when a foreign Company wishes to transfer its registration to the Republic to become a domesticated Company.

Section 44

The section concerning the provision of financial assistance in connection with the acquisition by the Company of its own securities.

Section 45

The section governing loans to Directors and intra-group loans.

Section 46

The section regarding distributions of any kind, including dividends.

Section 47

The section involving issues of capitalisation shares with a cash alternative.

Section 48

The section of the law that regulates share buy-backs.

Section 113

The section pertaining to mergers and amalgamations.

Shareholder right to dividends

The right of a shareholder to receive certain dividends when they are declared, unless the MOI provides otherwise.

Shareholder right to capital return

The right of a shareholder to the return of capital upon the winding up of the company, unless the MOI provides otherwise.

Shareholder meeting rights

The right of a shareholder to attend and vote at meetings of shareholders, unless the MOI provides otherwise.