company Law

company Law

LLM Company Law
Alyn is the majority shareholder in Cola Ltd owning 51% of the share capital. Simon and Diane own 20% each and Louis owns the remaining 9%. Cola Ltd produces tin cans of fizzy pop.
Alyn in his capacity as director enters in to a number of contracts. The first contract is with CleanEazy Ltd for the purchase of three new tank cleaning kits, which Cola Ltd needs to clean the acid from its production vats. Alyn is aware that CleanEasy Ltd has a poor track record in terms of the safety of its products; in a recent magazine article serious faults were reported in CleanEasy Ltd’s tank cleaning kits which led the consumer watchdog to conclude that the kits should be withdrawn from the market. However, Alyn decides to proceed with the transaction. After using the new tank cleaning kits for two weeks, Mario, an employee of Cola Ltd, is tragically killed as the chemicals in the cleaning kits react with the acid in the vats causing a deadly poisonous gas to be emitted, which was ingested by Mario during cleaning process.
Alyn concerned that the company may not be able to survive if news of Mario’s death as a result of faulty equipment is made public. Alyn, therefore, decides to divert a business opportunity, that the company has been pursuing with a raw materials supplier to manufacture its own tins in the production of its fizzy pop drink, to his own company where he is the sole shareholder.
Simon Diane and Louis hear about the purchase of the equipment, the death of Mario, and the diversion of the business opportunity. They meet informally and decide they wish to commence litigation in the company’s name, albeit Louis and Simon are of the opinion they should ratify Alyn’s conduct in regard to the diversion of the business opportunity since it was unlikely they would have secured the contract. Diane, however, wishes to enforce the company’s rights to the full extent.
Advise Simon, Diane and Louis as to whether there has been a breach of duties on the part of Alyn, the procedure available to them for enforcing the company’s rights, and the likelihood of success in pursuing

 
ORDER THIS ESSAY HERE NOW AND GET A DISCOUNT !!!

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.