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Statutory safeguard - Non-accepting shareholders:
The non-accepting shareholders have a further statutory safeguard. Company A is not obliged to serve notice of intention to acquire their shares. But as soon as Company A's total ownership of shares in Company B reaches 90 per cent (or 90 per cent of a class) it must within one month give notice of that fact to the holders of the outstanding shares. Those shareholders may then within the ensuing three months require Company A to acquire their shares on the same terms as have been accepted by the approving shareholders. By this means the shareholders who at first did not accept the offer for their shares may accept it in order to escape from the unsatisfactory position or remaining as a very small minority of members in a company (B) dominated by a single shareholder(A): CA, s.210(2).
Articles of association: The memorandum of a company limited by shares or by guarantee must state that the liability of the company's members is limited. Hence the memorandum
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