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 Annual General Meeting 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 Extraordinary General Meeting on that issue, but no Extraordinary General Meeting was convened. Subsequently, one member filed a suit for the winding up of the Company due to non-compliance with the rule regarding Annual General Meeting under the Companies Act 1994. Identify the violations of different provisions of the Companies Act 1994 by the Rahim and Sons Ltd.
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