This problem is based on breach of duty by directors. In this case it is apparent that Daudi is guilty of breach of duty to the company. His conduct is fraudulent in character and the company is entitled to damages since the general meeting of the company has ratified the abuse of power Jane Wangokho and other aggrieved members have the right to institute a derivative action against Daudi for the misfeasance. The action is representative in character. My advise is based on the exceptions to the rule in Foss V.Harbottle which facilitate a derivative action against fraudsters if the company cannot itself institute proceedings.?
marto answered the question on February 7, 2019 at 05:15
- Jane Wangokho is a minority shareholder of Tuzo Company Limited.
John Daudi is the managing director and majority shareholder of Tuzo Company Limited.
...(Solved)
Jane Wangokho is a minority shareholder of Tuzo Company Limited.
John Daudi is the managing director and majority shareholder of Tuzo Company Limited.
Jane Wangokho has discovered that John Daudi has breached his duties as a director by purchasing goods from the company at a gross undervalue. A general meeting of the company at which John Daudi attended and voted has ratified the sale.
Advise Jane Wangokho on the courses of action she may take.
Date posted: February 7, 2019. Answers (1)
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Jacob White, the managing director of the company is interviewed on television and he states that the news to be released shortly will demonstrate a great break-through in the control of malaria. He also stated that the company was the only one with modern technical knowledge of this great invention. As a result there is over-subscription of the shares.
Allan, who has not read the prospectus, applied for shares and is allotted 2000 at the price of Sh. 50 each.
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Charles, who read the report of the interview in the national newspaper, bought 5000 shares at the stock exchange at Sh. 55 per share.
In the meantime, the patents are found not to be original and are revoked. The shares fall in value to Sh. 10 per share.
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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John Daudi is the managing director and majority shareholder of Tuzo Company Limited.
...(Solved)
Jane Wangokho is a minority shareholder of Tuzo Company Limited.
John Daudi is the managing director and majority shareholder of Tuzo Company Limited.
Jane Wangokho has discovered that John Daudi has breached his duties as a director by purchasing goods from the company at a gross undervalue. A general meeting of the company at which John Daudi attended and voted has ratified the sale.
Advise Jane Wangokho on the courses of action she may take.
Date posted: February 6, 2019. Answers (1)
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(Solved)
Explain the disadvantages to a minority shareholder in bringing a derivative action.
Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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Distinguish between the following classifications and debentures:
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Date posted: February 6, 2019. Answers (1)
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...(Solved)
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)