Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Acme Ltd's share capital is made up of 100,000 ordinary shares and 1,000 preference shares which come with a right to a 25% preferential dividend.

Acme Ltd's share capital is made up of 100,000 ordinary shares and 1,000 preference shares which come with a right to a 25% preferential dividend. Because of this large preferential dividend right, Acme is having trouble raising much needed ordinary share capital, so its board proposes reducing the company's share capital by returning the preference share capital. After giving 21 days' notice to shareholders, it holds a general meeting of its shareholders but not all of them attend. At the meeting, both the ordinary and preference shareholders who attend the meeting vote unanimously to approve resolutions to return the preference share capital. Rhonda holds 2% of the preference share capital. Unfortunately, her notice of meeting was lost in the mail, so she did not receive it and she does not attend the meeting. If she had attended, she would have opposed the resolutions. Advise Rhonda what action, if any, she can take with respect to the return of preference share capital. Would it have made a difference if Rhonda held 22% of the preference share capital?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intellectual Property Law

Authors: Tina Hart, Simon Clark, Linda Fazzani

6th Edition

0230366538, 978-0230366534

More Books

Students also viewed these Law questions

Question

Explain the employee benefits that are required by law.

Answered: 1 week ago

Question

List the types of incentive plans.

Answered: 1 week ago