The articles of Spades Ltd. provide inter alia i) Any shareholder appointed to the position of managing director shall hold the position for life. ii) Any shareholder who at any time wishes to transfer any or all of his shares shall first offer them to existing shareholders of the company who shall be obliged to purchase such shares at the original purchase price” In September, Karen a shareholder, was appointed managing director of spades Limited The Board of directors has taken a decision to dismiss Karen forthwith because of her poor performance on the job to date. Joseph, a shareholder wishes to sell his shares and has received an offer from Peter who is not a shareholder to buy shares at a price well above the original price. Melissa an existing shareholder is adamant that she should be given an opportunity to purchase Joseph’s shares at the original price. Joseph is the only shareholder who currently holds less than 5% of the shares of Spades Limited Advise Karen and Melissa
The articles of Spades Ltd. provide inter alia i) Any shareholder appointed to the position of managing director shall hold the position for life. ii) Any shareholder who at any time wishes to transfer any or all of his shares shall first offer them to existing shareholders of the company who shall be obliged to purchase such shares at the original purchase price” In September, Karen a shareholder, was appointed managing director of spades Limited The Board of directors has taken a decision to dismiss Karen forthwith because of her poor performance on the job to date. Joseph, a shareholder wishes to sell his shares and has received an offer from Peter who is not a shareholder to buy shares at a price well above the original price. Melissa an existing shareholder is adamant that she should be given an opportunity to purchase Joseph’s shares at the original price. Joseph is the only shareholder who currently holds less than 5% of the shares of Spades Limited Advise Karen and Melissa
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The articles of Spades Ltd. provide inter alia
- i) Any shareholder appointed to the position of managing director shall hold the position for life.
- ii) Any shareholder who at any time wishes to transfer any or all of his shares shall first offer them to existing shareholders of the company who shall be obliged to purchase such shares at the original purchase price”
In September, Karen a shareholder, was appointed managing director of spades Limited
The Board of directors has taken a decision to dismiss Karen forthwith because of her poor performance on the job to date.
Joseph, a shareholder wishes to sell his shares and has received an offer from Peter who is not a shareholder to buy shares at a price well above the original price. Melissa an existing shareholder is adamant that she should be given an opportunity to purchase Joseph’s shares at the original price. Joseph is the only shareholder who currently holds less than 5% of the shares of Spades Limited
Advise Karen and Melissa
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