SECTION C

(Answer one question from this section)

6. Explain the significance of the case of Salomon v Salomon and Co Ltd [1897] AC 22.

7. Jeremy is a shareholder in A Ltd. A Ltd specialises in the sale and purchase of laptops. He has 1000 shares in the company. There are also other shareholders in the company. Jane has 500 shares, Amjad has 500 shares and Saira has 700 shares. All four of the shareholders are also directors of the company.

Jane is also a director of B Ltd. B Ltd is also a company that specialises in the sale and purchase of laptops. Both A Ltd and B Ltd are competitors. When Jane became director and shareholder of A Ltd she never disclosed she was a director in B Ltd.

Jeremy is the managing director of the company. He was the founder of the company and had also acted as the promoter of the company. Jeremy discovers that Jane is a director of B Ltd and wishes to remove Jane as director of the A Ltd.

Answer the following questions:

1. What duties are directors of a company subject to?
2. Advise Jane about her two directorships.
3. Advise Jeremy about his attempt to remove Jane as director of A Ltd.

8. Distinguish between private companies limited by shares and public companies limited by shares.

SECTION C (Answer one question from this section) 6. Explain the significance of the case of Salomon v Salomon and Co Ltd (1897] AC 22. 7. Jeremy is a shareholder in A Ltd. A Ltd specialises in the sale and purchase of laptops. He has 1000 shares in the company. There are also other shareholders in the company. Jane has 500 shares, Amjad has 500 shares and Saira has 700 shares. All four of the shareholders are also directors of the company. Jane is also a director of B Ltd. B Ltd is also a company that specialises in the sale and purchase of laptops. Both A Ltd and B Ltd are competitors. When Jane became director and shareholder of A Ltd she never disclosed she was a director in B Ltd. Jeremy is the managing director of the company. He was the founder of the company and had also acted as the promoter of the company. Jeremy discovers that Jane is a director of B Ltd and wishes to remove Jane as director of the A Ltd. Answer the following questions: a) What duties are directors of a company subject to? b) Advise Jane about her two directorships. c) Advise Jeremy about his attempt to remove Jane as director of A Ltd. 8. Distinguish between private companies limited by shares and public companies limited by shares