In 2020, Peter, Fred and Wendy) set up Runner Ltd, to manufacture and supply clothing. They are
Question:
In 2020, Peter, Fred and Wendy) set up Runner Ltd, to manufacture and supply clothing. They are the only Directors and each holds 20% of the shares in the Company. The rest of the shares are held by some 40 investors who have largely, remained passive while Peter, Fred and Wendy run the business very successfully. Peter is also on the Board of Directors of Trim Ltd., a major competitor of Runner Ltd. Fred is the Director responsible for new products and has developed a new dress fabric which is stain proof and does not need washing. However, when he presents his new fabric to the Board, the others are unimpressed and refuse to introduce it into the Company's product line. Fred has subsequently announced that he is leaving the Company to set up his own Company to develop products for the new fabric. Peter has approached Fred privately to see fi he would be interested in developing the fabric with Trim Ltd. Instead. The other shareholders have become aware of al the issues relating to Fred's departure. Advise them as to how they might protect the interests of Runner Ltd. In this situation. Back up answer with the companies act 2017 and any legal cases
Expert Answer:
In this situation the other shareholders of Runner Ltd can take certain steps to protect the interests of the company Here are some possible actions t... View the full answer
