Opinion Writing Essay Example | Topics and Well Written Essays - 3000 words

Opinion indite - Essay Example3. I have also been asked to advise OTW in relation to a resolve it entered into with BKD another company where Daniel was also a majority shareholder and director but without the knowledge of OTW. I am asked to advise on whether there was any irregularity in the contract and if so what should be done about it.4. OTW is a private company limited by shares formed in 2010 by five individuals Daniel, Umar, Janet and Zainab. The shares of the company are owned equally and each shareholder was issued with 6 ordinary shares of 1 each. Each shareholder paid 10,000 for his shares - 1666. 67 per share. Each of the individuals was also a director of the company.5. In 2013, two of the individuals stopped any active involvement in OTW. They decided that in their opinion, the company was not discharge to succeed. The remaining three individuals are still hopeful that in the short to medium term, OTW will operate profitable.6. The first individual to leave the co mpany was Alex who had interchange some equipment to the company when it was formed. The equipment was bought at the price of 8,000 which was its foodstuff price. OTW sold the equipment back to Alex at a price 8,000 when he left. The transaction regarding the equipment is noted in wit minutes, but no other paperwork exists in respect of it.8. The amended articles provide that where a person ceases to be a director, any shares that he holds are to be offered for sale to the company and the other shareholders at a price calculated using the net asset value of the company.9. The net asset value of OTW on its most recent accounts is 46,850. Article 26A of the companys articles provides that the companys shares are to be sold at a transfer price, which is the net assets of the company indicated in the last audited accounts divided by the twist of ordinary shares.11. Stock transfer forms were