The shares of United Limited, a private company are held by Jane, John and Alex. Jane and John…
The shares of United Limited, a private company are held by Jane, John and Alex. Jane and John hold 90% of the company’s shares. However, they feel that the company is in need of further capital but due to squabbles, they are not willing to inject additional funds as long as Alex still holds some shares in the company. Further, Jane and John believe that Ales has another 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 90% of 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 for advice. Base your answer on company law and advise Alex. (20Marks)
Your work should have intext citation and a proper reference section for all sources used in the assignment