Case Study 3

Cinemas Entertainment Ltd filed its Article of Association with Registrar of Companies during the registration process. One of the clauses in the article stated that shares could not be transferred to a non-member if any other member was prepared to purchase them. Later the articles were changed to allow the free transfer of shares to non-members, if an ordinary resolution was passed approving the transfer. A group of shareholders were frustrated by the amendment in the articles and filed a lawsuit against the directors of the company, stating that the amendment is null and void.

Required:

With reference to Companies Act of Fiji 2015, critically evaluate what can be the possible court ruling.

Case Study 4

Eric, Kevin, and David want to set up a company in Fiji and register it as Nice Limited. You are their close friend and since you are working in financial institution, provide them your advice on the following matters:

1.Limitation imposed upon choice of business name in accordance with the provisions of the registration of business names as set out in Companies Act of Fiji 2015.

2.The type of companies and their nature.