1. Arthur and Tony are the sole shareholders of Limpopo Ltd. They both have 50% of...
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1. Arthur and Tony are the sole shareholders of Limpopo Ltd. They both have 50% of the shares. b) Tony wants his daughter, Chloe, to join the business, and suggests that he and Arthur each sell Chloe some of their shares. Advise Arthur as to whether there would be a disadvantage to him selling Chloe some of his shares. The Articles of Association of Limpopo Ltd. say that Tony is to be a director of the company for life. Explain whether the provision will be enforceable. 1. Arthur and Tony are the sole shareholders of Limpopo Ltd. They both have 50% of the shares. b) Tony wants his daughter, Chloe, to join the business, and suggests that he and Arthur each sell Chloe some of their shares. Advise Arthur as to whether there would be a disadvantage to him selling Chloe some of his shares. The Articles of Association of Limpopo Ltd. say that Tony is to be a director of the company for life. Explain whether the provision will be enforceable.
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a This is comparable to the Rayfield v Hand case where purchasing shares resulted in a collateral co... View the full answer
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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