Question
Lau Furniture Co Ltd (LFC) is a private company specializing in the manufacture and import of office furniture. The company has three shareholders. They are
Lau Furniture Co Ltd (LFC) is a private company specializing in the manufacture and import of office furniture. The company has three shareholders. They are Amy Lau, who holds 20% of the issued shares, Bob Lau, Amy's brother, who holds 50% of the issued shares, and Cathy Ma, owns the remainder of the shares issued by LFC. Bob is the only director of LFC. Leave to commence a *statutory derivative action under Cap 622 ss.732 and 733 against Bob has been granted to Cathy. Bob stops payments on the invoices issued by LFC's suppliers. He then passes a director's resolution under Cap 32 s.228A for a voluntary liquidation of the company. The resolution is passed on the ground that the company is unable to continue business because it is unable to meet its liabilities and shareholders are reluctant to provide further finance. Amy agrees with Bob that the company should be wound up. Cathy seeks your advice on how she should deal with the recent developments. (You do not need to focus on the Statutory Derivative Action)
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