Question
A, B and C are the shareholders of ABC Company (Pty) Ltd (hereafter ABC). A holds 50 shares; B holds 150 shares and C holds
A, B and C are the shareholders of ABC Company (Pty) Ltd (hereafter "ABC"). A holds 50 shares; B holds 150 shares and C holds 50 shares. B now proposes that the company issues 300 more shares to his brother, D. A objects to this proposal and argues that he and C should first be afforded an opportunity to subscribe to the new shares. Advise A whether he and C are entitled to first be afforded an opportunity to subscribe to the new shares. Analyse the legal position with reference to the relevant sections of the Companies Act 71 of 2008 of South Africa.
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