SAFPL has two classes of shares on issue – ordinary shares and A Class shares. Under the terms of the SAFPL constitution, each A Class share currently carries an entitlement to vote on any resolution to amend the company’s constitution. The directors of SAFPL would like to have the constitution amended so that A Class cannot vote on constitutional amendments.
SAFPL has two classes of shares on issue – ordinary shares and A Class shares. Under the terms of the SAFPL constitution, each A Class share currently carries an entitlement to vote on any resolution to amend the company’s constitution. The directors of SAFPL would like to have the constitution amended so that A Class cannot vote on constitutional amendments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
SAFPL has two classes of shares on issue – ordinary shares
and A Class shares. Under the terms of the SAFPL constitution, each A Class
share currently carries an entitlement to vote on any resolution to amend the
company’s constitution. The directors of SAFPL would like to have the
constitution amended so that A Class cannot vote on constitutional amendments.
Is this possible? If so, what would be required to make that amendment?
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