- 10 Marks
BCL – Nov 2019 – L1 – Q2d – Company directors and other officers
Options available to a minority shareholder and potential court reliefs in a company merger scenario.
Question
Kwame Akoto holds 15% share in Sikem Investment Ltd, a brokerage firm, which by the regulations of the company, entitled him to appoint a director. To avoid the strict and high standards of banking, the Regulations of Sikem Investment prohibits banking and savings and loan schemes. Kwame Akoto received a letter from Mr. Pinkrah, Managing Director and 55% shareholder, that the company has merged with Sikaman Group owned 100% by Mr. Pinkrah. The merged company will upgrade into a full bank within the next three months. The shares of Kwame Akoto and all minority shareholders with Sikem Investment Ltd will be converted into a loan at 10% per annum interest with principal repayment schedule over the next five years. Mr. Pinkrah took all decisions alone without consulting the seven members on the board. All attempts to hold a board meeting to discuss the issues have been thwarted by Mr. Pinkrah.
Required:
i) State THREE (3) options open to Kwame Akoto in the circumstance of this case. (6 marks)
ii) State FOUR (4) likely reliefs the court may grant. (4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Company Law, Legal Remedies, Minority Protection, Shareholder Rights
- Level: Level 1
- Topic: Company directors and other officers
- Series: NOV 2019