Thato, Lee, and Musa share equal ownership in Mist (Pvt) Ltd and serve as directors. To...

 

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Thato, Lee, and Musa share equal ownership in Mist (Pvt) Ltd and serve as directors. To supply meals to a nearby restaurant for six years, Mist (Pvt) Ltd signs a deal. At roughly the same Leee, a well-known fast food chain contacts Mist (Pvt) Ltd to request frozen vegetables. Due to a lack of resources to handle two distinct, sizable contracts, Thato, Lee, and Musa vote to reject the deal with the fast-food chain in a board meeting. The management of Mist (Pvt) Ltd is the subject of a dispute between Thato, Lee, and Musa. Thato and Lee establish a separate business, Fog (Pvt) Ltd, after concluding they cannot work with Musa any longer. Then, at a board of directors meeting of Mist (Pvt) Ltd, a resolution is passed stating that Fog (Pvt) Ltd will assume the contract from Mist (Pvt) Ltd. They approve a resolution ratifying their board resolution to permit Fog (Pvt) Ltd to take over the food business contract using their majority shareholding in Mist (Pvt) Ltd to make sure Musa won't have a chance to object. After talking with the fast-food chain, Thato and Lee come to an agreement under which Fog (Pvt) Ltd will provide it with frozen veggies on the same terms as those that the fast-food chain had first provided to Mist (Pvt) Ltd. Musa feels wronged and plans to file a lawsuit against Thato and Lee for their inappropriate behaviour. i. Assess the likelihood that Musa will be successful in his lawsuit against Lee and Thato over the supply deal with the neighbourhood eatery. (9 mark) ii. Evaluate if Musa is likely to be successful in his lawsuit against Lee and Thato over the supply deal with the fast-food company. (6 marks) b. Describe the share redemption procedure. (10 marks) Thato, Lee, and Musa share equal ownership in Mist (Pvt) Ltd and serve as directors. To supply meals to a nearby restaurant for six years, Mist (Pvt) Ltd signs a deal. At roughly the same Leee, a well-known fast food chain contacts Mist (Pvt) Ltd to request frozen vegetables. Due to a lack of resources to handle two distinct, sizable contracts, Thato, Lee, and Musa vote to reject the deal with the fast-food chain in a board meeting. The management of Mist (Pvt) Ltd is the subject of a dispute between Thato, Lee, and Musa. Thato and Lee establish a separate business, Fog (Pvt) Ltd, after concluding they cannot work with Musa any longer. Then, at a board of directors meeting of Mist (Pvt) Ltd, a resolution is passed stating that Fog (Pvt) Ltd will assume the contract from Mist (Pvt) Ltd. They approve a resolution ratifying their board resolution to permit Fog (Pvt) Ltd to take over the food business contract using their majority shareholding in Mist (Pvt) Ltd to make sure Musa won't have a chance to object. After talking with the fast-food chain, Thato and Lee come to an agreement under which Fog (Pvt) Ltd will provide it with frozen veggies on the same terms as those that the fast-food chain had first provided to Mist (Pvt) Ltd. Musa feels wronged and plans to file a lawsuit against Thato and Lee for their inappropriate behaviour. i. Assess the likelihood that Musa will be successful in his lawsuit against Lee and Thato over the supply deal with the neighbourhood eatery. (9 mark) ii. Evaluate if Musa is likely to be successful in his lawsuit against Lee and Thato over the supply deal with the fast-food company. (6 marks) b. Describe the share redemption procedure. (10 marks)

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i Assess the likelihood that Musa will be successful in his lawsuit against Lee and Thato over the supply deal with the neighborhood eatery The likelihood of Musa being successful in his lawsuit again... View the full answer