Question
One Mr. Rahim, was a shoe manufacturer and his partnership business was in a very sound condition. However, for greater mobilization of the capital, he
One Mr. Rahim, was a shoe manufacturer and his partnership business was in a very sound condition. However, for greater mobilization of the capital, he formed a public limited company named "Rahim & Sons Ltd" on 1st March, 2015. This Company was formed by him for the purpose of taking over and carrying on his earlier business. The members of this new company were Mr. Rahim himself and his four sons. And the members of the Board of Directors were Mr. Rahim and his eldest son. On the basis of the prospectus issued by the Company, many people showed interest in buying shares and the number increased from five to twenty quickly. On 21st March, 2015, the company held a general meeting of its members to fulfill the statutory requirements. On 30 September 2016, an AGM was held where no dividend was issued. Five members having one-third of the issued share capital requested the Board of Directors to hold an EGM on that issue, but no EGM was convened. Subsequently, one member filed a suit for the winding up of the Company due to non-compliance with the rule regarding AGM under the Companies Act 1994.
Identify the violations of different provisions of the Companies Act 1994 by the Rahim and Sons Ltd.
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