Question 4

The Board of Directors Alfa Company borrowed a sum of money from a plaintiff. The Articles of Association stated that the B.O.Ds could borrow money provided they are authorized by a resolution in the general meeting of the company. The shareholders claimed that the fund were taken without any such resolution, Alfa Company was liable for the loan.

As the plaintiff found that the company could borrow funds based on the resolution, they had enough grounds to believe that resolution was passed.

On the basis of the above, discuss:

a) The importance of resolutions in the management of the company. (2.5 Marks)

b) As per the Commercial Company Law, does the situation support the plaintiff? (2.5 Marks)

c) As per the Commercial Company Law, does the situation support shareholders of the Afla Company? (2.5 Marks)

d) Are the role of Directors supported by such a situation in Oman Company Law? (2.5 Marks)

Question 4 The Board of Directors Alfa Company borrowed a sum of money from a plaintiff. The Articles of Association stated that the B.O.D's could borrow money provided they are authorized by a resolution in the general meeting of the company. The shareholders claimed that the fund were taken without any such resolution, Alfa Company was liable for the loan. As the plaintiff found that the company could borrow funds based on the resolution, they had enough grounds to believe that resolution was passed. On the basis of the above, discuss: a) The importance of resolutions in the management of the company. (2.5 Marks) b) As per the Commercial Company Law, does the situation support the plaintiff? (2.5 Marks) c) As per the Commercial Company Law, does the situation support shareholders of the Afla Company? (2.5 Marks) d) Are the role of Directors supported by such a situation in Oman Company Law? (2.5 Marks)