Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Principles of Managerial Finance

Authors: Chad J. Zutter, Scott B. Smart

15th edition

978-0134476315

Students also viewed these Accounting questions