Easily Remove Fileds into the Company Constitution

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How to Remove Fileds into the Company Constitution

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[Music] welcome to this short video blog which is part of a series on company transactions for smes today i am looking at how can you remove a director or shareholder in most smes the directors and shareholders will be the same persons removing one of them can be difficult and there are several ways of doing this the tactical approach is usually needed you need to examine the legal position of directors directors usually have different legal roles by that of director employee and shareholder check the articles to see if they provide for a director to be removed a director can always be removed at a meeting of shareholders for which 28 days notice is required and a 51 majority is also needed this can be problematic so check to see whether the chairperson has a casting vote the company could seek to remove a director who is in bdocHub of their directors duties if so this might mean the company could make a claim against the director for him or her to pay back money to the company conside

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How do you alter articles of association?

Company can alter its Article by way of addition, deletion, modification, substitution, or in any other way, only if it wants. To alter the Article of association of Company By giving Notice of at least 7 days. At the Board meeting, the given resolutions in respect of alteration in AOA must be passed.

What should be in a business constitution?

It includes rules that set the structure of the business, such as: Shares: how shares will be issued, transferred, and the process of share certificates. Meetings: a detailed description of how general meetings will be conducted and recorded.

What is Section 163 of the Companies Act case law?

In obtaining relief from a court in terms of Section 163, an applicant must prove to the court that the relevant conduct complained of was oppressive, or unfairly prejudicial or unfairly disregards the applicants interests.

Can a company amend its articles?

You cannot change the articles to remove the ability to make further changes to them in future. However, there may be conditions attached to making alterations. For example, a contractual arrangement like a shareholders agreementmay effectively restrict the ways in which the articles can be amended.

What is Section 163 of directors?

ing to Section 163 of the Companies Act, a companys articles must provide for the appointment of not less than two-thirds of its total number of directors ing to the concept of proportional representation, whether by single transferable vote, cumulative voting, or other means.

What is the purpose of Section 163 of Companies Act?

Section 163 of the Companies Act allows for a minority shareholder to apply to a court for relief should he/she feel oppressed, unfairly prejudiced, or that his/her interests are unfairly disregarded by the board of directors, the majority shareholders, or a separate juristic entity.

What is Section 163 of the Companies Act?

Section 163 of the Companies Act allows for a minority shareholder to apply to a court for relief should he/she feel oppressed, unfairly prejudiced, or that his/her interests are unfairly disregarded by the board of directors, the majority shareholders, or a separate juristic entity.

What is s163 of the Companies Act?

One such mechanism is section 163 which allows a shareholder or a director of a company, as the case may be, to approach the courts and ask for relief if any act or omission by the company or a related person has an oppressive or unfairly prejudicial result, or unfairly disregards the interests of such shareholder or

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