Andy was hesitant to invest so much money into their company

Assignment Help Operation Management

Reference no: EM132109416

Andy recently had a serious discussion with Barney and Cathy (both Directors) regarding buying a 30% share of their company, Fly High Pte Ltd. Andy was hesitant to invest so much money into their company. To entice Andy to commit to buying the shares, Barney and Cathy promised to give Andy a job for an extended period of time. They promised to appoint him as the Senior Manager of Business Operations since Andy had previous experience with large multi-national corporations.

Before Andy invested in the company Barney and Cathy got shareholder approval to amend the constitution to show that Andy would from the time that the contract had been signed be the Senior Manager of Business Operations for a period of 10 years.

Based on this, Andy bought 30% of the shares in the company.

After six months, Barney and Cathy noticed that Andy rarely showed up to work and showed very little concern about the company’s affairs as he was often flying around Asia and having a good time. Barney and Cathy called for a general meeting but did not notify Andy as they were certain he would not make an appearance.

Andy also ordered furniture for his office costing $75,000.

At the general meeting, the shareholders voted to change the constitution and remove Andy from his position.

When Andy returned, he became very upset and wishes to take action against the 2 directors and the company.

Required:

Please advise Andy regarding any legal issues arising from the facts above, citing relevant case law and legislation.

Advise the company whether it is bound to pay for the furniture ordered by Andy.

Reference no: EM132109416

Questions Cloud

Which has dealt with racing parts pte ltd before accepts : Repco Ltd which has dealt with Racing Parts Pte Ltd before accepts and prepares order. Ramon has paid Racing Parts Pte Ltd $45 being cost price for these items.

Different products and type of services that can be offered : Identify the competitive advantage (s) in business for growth. What are the different Products and type of services that can be offered.

What does crystallization mean : What is an entrenched provision in the memorandum and articles of association? What does crystallization mean?

Different views about what the company should produce : Ali has different views about what the company should produce and believes the company should produce documentaries about health and well-being.

Andy was hesitant to invest so much money into their company : Fly High Pte Ltd. Andy was hesitant to invest so much money into their company.

Common law and statutory law : If they have breached their duties what defences if any do they have at both common law and statutory law?

Relocating to your area for more education and training : A colleague has a friend who is considering relocating to your area for more education and training.

Discuss the reasons for the morale problem : What critical factor could interfere with Luis’ attempt to build morale? Identify and discuss the reasons for the morale problem;

What reasons besides policy : What reasons besides “policy” can you offer the Boudas to help them understand the situation?

User Account

All Pages