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The shares of United Limited, a private company are held by Jane, John and Alex. lane and John hold 90% of the company's shares. However,
The shares of United Limited, a private company are held by Jane, John and Alex. lane and John hold 90% of the company's shares. However, they feel that the company is in need of further capital but due to souabbles, they are not willing to inject additional funds as long as Alex still holds some shares in the company. Further, lane and John believe that Piles has anoier business which is competing with that of United Limited. To resolve the problem John and Jane proposed to alter the company's Articles of Association by adding two new articles. The first Article will enable the shareholders of 9G% ot the company's shares to compulsory acquire the shares of the minority shareholders. The second Article will require any shareholder who carries on competing business with the company's business to transfer his shares to the nominee of directors. Alex is aggrieved by the proposed alteration and comes to you tor advice. Ease your answer on company law and advise Alex. {EilMarks}
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