Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Directors of Quick Ltd called an AGM. The meeting was scheduled for December 1, 2020 and the notices were sent out November 17, 2020.

The Directors of Quick Ltd called an AGM. The meeting was scheduled for

December 1, 2020 and the notices were sent out November 17, 2020.

All but one member (Ms. Brown) received the notice and all those who received the notice attended the meeting on December 1. It was discovered that the one member who did not receive the notice, Ms. Brown, had incorrectly given her address as 100 Shady Drive instead of 10 Shady Drive and hence the notice never arrived at her address.

The notice of the meeting had stated that the company was resolving to sell a piece of land valued at $5M. When the members arrived at the meeting, it was found out that the directors were to get a commission of 10% on the sale but this was not stated in the resolution that accompanied the notice. The majority of members voted in favor of the resolution nonetheless.

Ms. Brown owns some preference shares in Quick Ltd and a meeting of preference shareholders was called to pass a resolution concerning the shares. The quorum for the meeting is five members and the articles provide that the quorum "MUST be present at the commencement of business."

At the beginning of the meeting, there were seven members but after some heated discussions about the resolution after it was put to the vote, three members were angry and left before the resolution was actually voted on. Out of the remaining four, three voted in favor of the resolution but Ms. Brown voted against it. The resolution was moved forward as passed.

Ms. Brown along with two other members wish to challenge the decision at the AGM and Ms. Brown wishes to challenge the decision at the meeting of preference shareholders and wants to know all the issues that she will have to contend with for each meeting and what would be the likely outcome of the challenge of each meeting, given the Case Law and relevant Statute.

Advise them.

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

Intellectual Property Law Text Cases And Materials

Authors: Tanya Aplin, Jennifer Davis

4th Edition

0198842872, 978-0198842873

More Books

Students also viewed these Law questions

Question

How does M2 differ from M1? What are money market mutual funds?

Answered: 1 week ago