Case Study Analysis: thoroughly Foods Ltd vs. Shareholders
Case overview
comfortably Foods Sdn Bhd (the community) was incorporated in 2009. The corporations sole object clause provides that the principal activity of the company is catering. Nelly and Rosman, who are chefs by profession, are the directors and to use upher they hold 85% of the shares in the company, the remaining 15% of the shares being held by ogdoad other shareholders.
The company has been doing extremely well since it was incorporated. Nelly and Rosman are needlelike to expand the business of the company. They are planning to set up a culinary school and gull been advised that the company forget have to indemnify its object clause ahead it can successfully embark into the newfound-sprung(prenominal) venture.
The facilitate the new venture, the company pass on need to acquire a new building. Nelly and Rosman do not wish to convert the company into a public company for this purpose. Instead, they have borrowed $200,000 from Ocean Bank. As security department for the loan, they have charged a piece of land own by the company to Ocean Bank.
Nelly and Rosman also paint a picture to crack a resolution to issue additional shares to existing shareholders, where they will be required to reprize their shareholdings in the company.
Nelly and Rosman also propose that the name of the company be changed from Good Foods Sdn Bhd to Heavenly Foods Sdn Bhd.
Nelly and Rosman have called for an extraordinary general meeting to pass the following resolutions, namely,
(i) to amend the objects clause to include the business of running a culinary school;
(ii) to issue additional shares by requiring all shareholders to double their shareholdings in the company; and
(iii) to change the name of the company from Good Foods Sdn Bhd to Heavenly Foods Sdn Bhd.
Chitra is one of the shareholders in the company. She is against all of the above proposed changes and will vote against the resolutions at the meeting. Chitra is also of the view that the...If you want to get a full essay, order it on our website: Ordercustompaper.com
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