Question
A,B,C,D entered into a shareholders Agreement in respect of axis pte ltd(axis) a company which they had incorporated. Clause 2 of the Shareholder agreement provided
A,B,C,D entered into
a shareholders Agreement in respect of axis pte ltd(axis) a company which they had incorporated. Clause 2 of the
Shareholder agreement
provided that each shareholder of axis is obliged to provide additional capital when required in accordance with the proportion of their respective share holding.E and F became members of the company a few months after Its incorporation,. As the company required an additional capital injection, all shareholders were informed by the CEO of Axis of an urgent need for a capital injection and requested each shareholder to provide the required capital funds. E and F refused to provide additional capital. Shortly before the capital injection exercise, D sold his shares in Axis to G.
Explain whether E and F can be compelled to provide additional capital under the shareholders' agreement and whether G would be bound by the shareholder's agreement upon purchasing D's shares.
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