Question
Limited company X has 50 shares, the ownership of which is divided as follows: natural persons A, B, C, D, E and F each have
Limited company X has 50 shares, the ownership of which is divided as follows: natural persons A, B, C, D, E and F each have 5 shares and limited company G has 20 shares. There is no mention in the Articles of Association of the different types of shares. The agenda of the Annual General Meeting includes a decision on the sale of the 200 hectare forest farm owned by limited company X. Limited company X has received a tender offer for the forest space, the approval of which the Board of Directors proposes to the shareholders. Another decision presented by the Board of Directors is a redemption clause to be added to the Articles of Association. Limited company X's Board of Directors justifies the sale of the forest space with a good market situation and also with the growing costs of forest management. According to the Board, the redemption clause is necessary to keep the company's ownership structure more controllable. Prior to the meeting, limited company G's Board of Directors has already informed limited company X's Board of Directors that limited company G will support the proposed resolutions. The position of the other shareholders will not be known before the meeting. Other shareholders, with the exception of A, are present at the Annual General Meeting.
How should limited company X's Annual General Meeting proceed in order for the Board's proposed resolutions to be approved in a valid manner? What obligations do the approved decisions impose on limited company X's Board of Directors?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started