Miss Olufemi,Mr. Theophils Okine and Mrs. Lampety-Mills are shareholders of Groover Ventures Ltd.They had equal percentage of the issued shared of Groover Ventures Ltd.All the shareholders are directors of the company.Miss Olufemi and Mr. Okine hold Executives positions in the company.As a result of personal financial difficulties,Mrs. Lamptey-Mills has not paid for the share issued to her.
At its last meeting,the Board passed a resolution to authorize the sale of one of the company’s building at Haasto to Maximas Consult Ltd.a company whose shares are held by Mrs.Lamptey –Mills and her husband .Other interested parties had offered higher values for the building.Maximas Consult Ltd quickly sold the building making a huge profit.Mrs. Lamptey-Mills used some of the proceeds of the sale to pay for her shares.
Groovers ventures Ltd, has made impressive financial returns ,but at the last Board meeting ,a resolution was passed that no dividend will be declared .executive remuneration was however ,increased by 200%.She consulted her lawyer who wrote to the company complainig that becuase of thir complete disregard of his client’s interest ,she is no longer interested in the business and wants her investment back.Miss Olufemi and Mr. Okine are worried and are considering a buyback of Mrs. Lamptey-Mills shares through a loan deal with a local bank.
Required to Do:Consider the issues arising ,discuss them and advise Miss.Olufemi and Mr. Okine

JudyKayTee

Read the guidelines - "we" don't do homework here, particularly when the word "required" is part of the question.