6
answers
1
watching
144
views

 Framework Ltd is a private company limited by shares which runs a small art gallery in Ireland. It 

 has an issued share capital of 1201 ordinary €1 shares of which Millie owns 601; Andrea holds 300 

 and Sam holds the remainder. Millie wants to end her involvement in the business to move abroad. 

 She has offered to sell her shares to Andrea for €50,000. Andrea agrees that this is a reasonable 

 price for the shares, but she is unable to raise the finance from her own resources. She is anxious to 

 avoid a situation where Sam is given the option to purchase the shares as he would then have a 

 majority and she would be unable to agree with his proposals for the direction of the business.

 To assist Andrea in purchasing the shares, Millie has proposed the following:

 a) The company could provide Andrea with a loan to enable her to purchase Millie’s shares; or

 (50 marks)

 b) The company could buy back all of Millie’s shares allowing her to leave the company and 

 prevent control falling into Sam’s hands.  (50 marks)

 Advise Andrea and Millie whether the proposals set out above are compatible with the provisions of 

 the Companies Act 2014. Your answer should refer to relevant case-law.

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Already have an account? Log in
Already have an account? Log in
Already have an account? Log in
Already have an account? Log in
Avatar image
Read by 1 person
Already have an account? Log in

Related questions

Related Documents

Weekly leaderboard

Start filling in the gaps now
Log in