Louise and Mary acquired some preference shares in Novel plc – an investment company in the UK. Louise owns 9% and Mary obtains 8% of the preference shareholdings of Novel plc. They received remarkable dividends from their shareholdings in the last couple of years and were very satisfied with the reliable income.
However, last month the Novel plc altered its articles and as a result, the preference shareholders with shareholder holdings less than 10% would be deprived of any dividend rights.
Louise learned about the news and was furious about it. He intends to seek legal advice and challenge such deprivation of his rights. Meanwhile, Mary, as she invested in various other companies was reluctant to join Louise to bring a legal suit against Novel plc.
a) Discuss the standard procedures to alter the company’s articles. (5%)
b) Discuss Louise and Mary’s positions as minority shareholders, and advise them as to whether they could apply to the court to cancel such variation. (20%)bu
the majority of her shareholdings days before the annual report being circulated. a) Advise Sally and her sister Linda whether they have committed insider dealing. (15%) b) Advise Vivian concerning her position. (10%) Question 3: (25%) Louise and Mary acquired some preference shares in Novel ple an investment company in the UK. Louise owns 9% and Mary obtains 8% of the preference shareholdings of Novel ple They received remarkable dividends from their shareholdings in the last couple of years and were very satisfied with the reliable income. However, last month the Novel plc altered its articles and as a result, the preference shareholders with shareholder holdings less than 10% would be deprived of any dividend rights. Louise learned about the news and was furious about it. He intends to seek legal advice and challenge such deprivation of his rights. Meanwhile, Mary, as she invested in various other companies was reluctant to join Louise to bring a legal suit against Novel plc. a) Discuss the standard procedures to alter the company's articles. (5%) b) Discuss Louise and Mary's positions as minority shareholders, and advise them as to whether they could apply to the court to cancel such variation. (20%) Question 4: (25%) Lidia is a director of London Data Ltd. The company is providing business data mining and searching services for commercial clients. The business was in a financial difficulty