Hai has been informed that JKL Limited, a company in which he owns shares, has become insolvent. He had previously made several investments in shares and bonds issued by the company.The initial investment was a purchase of partly paid shares at half their nominal value. Encouraged by the capital growth and dividends on the investment immediately after the investment, Hai then purchased further shares at a price in excess of their nominal value. Hai also invested in bonds issued by the company.Hai’s brother has informed him that there is no need to worry as the bondholders will be given priority for the return of their capital, that there will be no further liability arising from the first purchase of shares and that the premium paid for the second purchase of shares can be recovered from the liquidator.Required:Discuss Hai’s potential rights and obligations arising from his ownership of the securities. (10 marks)
