- 4 Marks
Question
Identify TWO (2) processes required to vary the class rights of shareholders without the sanction of the Court. (4 marks)
Answer
- By a special resolution to alter the company’s Regulations to insert provisions regarding the variations of the rights of a class or to modify the terms of those provisions.
- The alteration shall require the prior written consent of the holders of at least three-fourths of the issued shares of each class.
- The sanction of a special resolution of holders of the shares of each class.
(2 points for 2 marks each)
- Tags: Class Rights, Company Law, Shareholders, Special Resolution
- Level: Level 1
- Topic: Company Meetings and Resolutions
- Series: NOV 2020
- Uploader: Dotse