Paper 1 Part 2: HK Legal Principles & the Companies Ordinance
HKSI LE Paper 1 · Regulatory Framework of the Securities & Futures Market · Part 2 · with answers and explanations
These 2 questions are all drawn from HKSI LE Paper 1 Part 2 “HK Legal Principles & the Companies Ordinance” and are identical to the free preview a non-paying app user sees (the first 2 questions by id). Tap an option to answer and instantly see the explanation. The full app covers 12 questions in this part.
Which of the following statements about the definition of 'debenture' under section 2 of the Companies Ordinance (Cap.622) is INCORRECT?
Explanation: Section 2 defines 'debenture' to include debenture stocks, bonds and any other debt securities, regardless of whether they constitute a charge on the company's assets. Hence D is incorrect; the definition is not limited to charged debt securities.
Under section 2 of the Companies Ordinance, which description of 'accounting transaction' is most accurate?
Explanation: Section 2 defines 'accounting transaction' as a transaction required by section 373 to be entered in the accounting records, excluding transactions arising from payment of fees required under any Ordinance. This reflects how HK's legal system uses precise statutory definitions to delineate the scope of corporate record-keeping obligations.
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