of Paradise Plc. Smith fails to mention the connection. Advise Smith of the legal situation? 5. Donna formed a private company several years ago by issuing 500 shares in the UK. There are 10 shareholders, with the smallest shareholder owning 25 shares, and Donna holding the most at 100 shares. The company needs additional cash, but the current shareholders do not wish to have any additional shareholder. What are their options and what additional factors should the current shareholders consider in raising the additional cash based on the general rules on financing of a company? 6. Five years ago Bolus plc, a pharmaceutical manufacturing company bought premises in Smallville, as part of the town's regeneration program. Bolus currently employs two thousand local people, many of them in lower paid semi- skilled jobs, and its business has thrived. It has a good reputation in the locality as a responsible employer and it sponsors the local football team. The factory is adjacent to farmland on the edge of the town. Apply UK law, discuss the legal issues concerning the directors' and company secretary's duties arising from the following scenarios: a) Bolus' premises are rapidly becoming too small to accommodate anticipated growth in the next five years. At the last general meeting, the shareholders authorized the directors to "decide, after further research, whether to expand the existing site, or re-locate to Oldcastle" (an industrial city 100 miles away). b) The board has commissioned a feasibility study for the new development from Make-It-Happen Lid, a small company owned by Arthur Tansy, stepson to Basil Pepper who is one of the directors of Bolus. This cost Bolus $10,000. c) Cedric Smeek, Bolus' company secretary, ordered a computer from Crash Ltd costing $1000 in Bolus name. He then sold it on to his daughter in law for E1,300. The transaction was discovered by Prudence Hope, the head of Bolus accounts department, and she has refused to issue payment to Crash Ltd. 7. In a shareholders' meeting of Summer Holidays PLC (SHP) the following issues have been raised: a. One director of the company set up his own company. b. Directors of the company decided to divide a current ordinary share into two (2) ordinary shares