Tag: Company Law

Critically evaluate the capacity of shareholders to participate in the governance of their corporations, making specific reference to the UK Corporate Governance Code.

Company law

‘Enhancing shareholder powers cannot improve corporate governance if shareholders do not wish to exercise their powers’.

Critically evaluate the capacity of shareholders to participate in the governance of their corporations, making specific reference to the UK Corporate Governance Code.

Students will be assessed on the following criteria:

The structure of the work so that statements, arguments and conclusions flow coherently and logically (LO3)1

Evaluation of the relevant legal and non legal issues and arguments (LO2)

Communication in good English (LO5)

Critical analysis of the relevant issues and arguments in the area, identifying and evaluating competing perspectives whilst showing an awareness of present-day

topical issues and new concepts (LO2)

Presentation of the law within its wider context (LO2)

Critical and creative reflection on the material used and conclusions reached; (LO3)

Depth and breadth of research, with the ability to judge the significan

Explain how Tyler has noted that if there is any complaint against his proposal he will use his majority shareholding to confirm his actions.

Company law

PB Falcon Ltd is a successful business owned by Tyler. Eleanor, a committed and dynamic manager was instrumental in assisting Tyler in making the company successful.

To reflect this Tyler gave Eleanor 15% of the shares in the company and a seat on the board as the finance director, and agreed to split the dividends 50/50 between the two of them. Tyler also promised to make Eleanor an equal shareholder within 5 years.

The impact of Covid-19 has brought trouble for PB Falcon Ltd and so Tyler has decided on the following actions:

Remove Eleanor from the board, making her a paid employee only.

Only paying a dividend in accordance with her shareholding.

Transfer the company property to himself.

Divert future orders to a new company owned and controlled by Tyler.

Tyler has noted that if there is any complaint against his proposal he will use his majority shareholding to confirm his actions.

Advise Eleanor as to any possible remedies