Birds Limited has three directors: Peacock, Sparrow and Vulture. Explain the legal implication of each of the following situations: a) Vulture’s son has recently come of age and vulture wishes to appoint him a director of the company b) The company is considering the purchase of a substantial quantity of goods from fly ltd., in which sparrow has a large shareholding through he is not a director peacock and vulture are unaware of sparrow’s interest in fly ltd. c) Because of adverse publicity about peacock’s private life, vulture and sparrow wish to remove him as a director, since he refuses to resign d) In view of the adverse publicity, vulture and sparrow decide to exclude peacock from participation in the company’s affairs e) The directors are advised wise & co., the company’s auditors, that there is no possibility of the company trading at a profit in the foreseeable future and no reasonable prospect of its paying its debts

Birds Limited has three directors: Peacock, Sparrow and Vulture. Explain the legal implication of each of the following situations: a) Vulture’s son has recently come of age and vulture wishes to appoint him a director of the company b) The Read More …

Naliaka owns 10% of the issued shares in Pendo Limited. There are two directors Wanyonyi and Wafula who have an eccentric style of management. They own 45% of the issued shares. Naliaka understands that Wanyonyi and Wafula want to merge Pendo Ltd. with another more profitable company that the two directors wholly own. If this plan goes ahead, Naliaka‟s shareholding will be reduced to 3% of the merged business. Naliaka is financially dependent on the dividends she gets from Pendo Limited and that future dividends may be much less. Advise Naliaka of her legal position and protection under the law if any.

Naliaka owns 10% of the issued shares in Pendo Limited. There are two directors Wanyonyi and Wafula who have an eccentric style of management. They own 45% of the issued shares. Naliaka understands that Wanyonyi and Wafula want to merge Read More …