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Henrich Koch sued Horteng. Horteng is a defendant and Henrich Koch is a plaintiff. The defendant company, which was manufacturing company as owned by Boateng.
Henrich Koch sued Horteng. Horteng is a defendant and Henrich Koch is a plaintiff. The defendant company, which was manufacturing company as owned by Boateng. The plaintiff and his girlfriend, both Germans agreed with Boateng to join the firm. They agreed to covert the enterprise into a limited liability company. They then proceeded to execute an agreement where the share structure was 40% for Boateng and 30% each for Koch and his girlfriend. An issue arose of whether the agreed share-structure was later varied to read 57% for Boateng and 43% for Koch or both Koch and the girlfriend. There is no evidence that the parties agreed to this new share structure. It is as well to state that it is not the duty or to put differently, the court has no power to determine the share-structure of a company. This is entirely the contractual right of the members of the company. Not even the registrar-general has that power, nor the investment centre except that the latter has an obligation to ensure that a foreign investor pays not less than USD 60, 000. All that the court has power to do is to enforce or declare an agreement on share-structure voluntarily entered into by members of the company. I am not satisfied that Boateng or the plaintiffs have succeeded in proving an agreement which supports the 57% 43% share structure. Consequently, I find that the share-structure of the new company is the agreed earlier one. The removal of Koch from the post of director of operations comes next. Mr. Twum testified that Koch was removed by a resolution passed by the directors at a general meeting. Koch himself tendered in evidence, the letter of removal. It refers to previous notices of a general meeting as well as another notice sent to Koch to attend a general meeting of the shareholders and directors. Required: As a Company Law Student, advise the plaintiff
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