I need ILAC ( ISSUE , LAW, APPLICATION, CONCLUSION ) for this : ISSUE: Enforceability of the
Question:
I need ILAC ( ISSUE , LAW, APPLICATION, CONCLUSION ) for this :
ISSUE: Enforceability of the shareholders' resolution to receive a weekly sum for each week that their dividend is outstanding. Under Irish law, shareholders are generally not entitled to individual entitlements from a company. Furthermore, if paying the weekly sum would put the company's solvency at risk, the directors may have a duty to protect the company's assets, meaning that they may have the power to override the shareholders' resolution.
the answer needs to have Bibliography and state where it is
this is irish law only
The directors of Appleinc ltd are brothers Steve and Jack. The constitution of Applieinc ltd provides that all contracts over 1,000,000 must be approved by the company shareholders in general meeting before the company can enter into such contracts. The directors caused Appleinc ltd to enter into a loan agreement with AIBC plc to borrow 2,000,000. The loan was supported by a charge given to AIBC plc. Appleinc ltd has missed a payment and AIBC plc has threatened to appoint a receiver to Appleinc ltd. The adult son of Steve and nephew of Jack, Eric works for Appleinc ltd, he is not a director but due to his familial relationship he does have considerable influence and power over the other employees. He also gets special treatment because of nepotism. Eric entered into a contract to purchase goods for Appleinc Ltd for 1,500,000. The directors claim that the contracts are not enforceable due to lack of authority. Because of the litigation arising from the above contracts, the company cash flow becomes restricted. The directors decide to avoid liquidation, the company should restrict the dividend given to the shareholders for the current year. Shareholders are outraged and pass a resolution to the effect that each week their dividend is outstanding, they're an entitled to a weekly sum". Advise the directors of Appleinc ltd whether the above contracts & resolution can be enforced considering corporate authority & capacity and the relevant law thereunder.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts