问答题
In the context of companies, explain (b) the procedure for altering class rights. (6 marks)
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Larry is a director of Ultrasports Ltd, a sporting goods retailer. The company wants to open an outlet at the new shopping centre in Orchard Road. It aims to be the largest sporting goods outlet in Singapore. The company needs to engage the services of an interior designer to do the concept design for the new outlet. Larry’s nephew, Sim, is a well-known award-winning interior designer. Larry would like to propose that the design contract be awarded to Slick Designs Pte Ltd, the interior design company of which Sim is the major shareholder.Required:Discuss whether Larry would be in breach of his duties as director if he proposes that Sim be awarded the contract at the next directors’ meeting and the consequences of such a breach. (10 marks)
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On 14 January 2008, at a meeting of the board of directors of Yippee Ltd, it was revealed that a major competitor was likely to make a takeover bid for control of the company within the next few days. The competitor had yet to make an official takeover bid. On the same day, Bob, a director of Yippee Ltd, bought 10,000 Yippee shares in the stock market. He also told the news to his friend Marcus who then bought 20,000 Yippee shares.Required:Discuss the legal positions of Bob and Marcus under the law relating to insider trading. (10 marks)
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