Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored 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

The Legal Environment Of Business A Managerial Approach Theory To Practice

Authors: Sean Melvin, Enrique Guerra-Pujol

4th Edition

1260247805, 978-1260247800

More Books

Students also viewed these Law questions

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago