The directors of Usafi Ltd. Diverted some funds meant for the extension of the commercial wing of the company‟s business premises to fund the expensive wedding of a son of one of the directors. At that particular time Juma was eth secretary. Eventually became a director. At Juma‟s very first board meeting, the earlier breach was ratified. To what extent, would Juma be liable for the earlier breach.

The act of Usafi Ltd was ultravires in the wides sense which is nothing but an abuse of power of the company by its officers often described as “Excess of directors‟ or transactions. • Ultravires the directors or transactions the Read more

Gwanju Co. Ltd is in need of additional shares. The majority are willing to provide this capital if they could purchase the 20% of the shares held by the minority. The minority shareholders refuse to sell to the majority shareholders who then propose to alter the Articles of Association to provide for compulsory acquisition on a specified basis. Discuss the legality or otherwise of this proposal.

An alteration of articles must be bonafide for the benefit of the company as a whole. Regard must be had to existing and future shareholders of the company. • Whether the alteration is made in good faith or not is Read more