Corporate Law - Waldmart ltd
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Added on 2020-02-05
Corporate Law - Waldmart ltd
Added on 2020-02-05
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CORPORATE LAW
Table of ContentsINTRODUCTION....................................................................................................................................................3TASK1 .....................................................................................................................................................................3TASK 2 ....................................................................................................................................................................4TASK 3 ...................................................................................................................................................................5CONCLUSION........................................................................................................................................................6REFERENCES ........................................................................................................................................................8
INTRODUCTIONCorporate law is the part of company law which includes shareholders, directors,employees and order members. There is growing concern that in which various types ofrights, duties and obligation which have to be follow by them. All people are liable for fulfiltheir duties according to law. Every company having a power to issue bonus share to theirshareholders whenever they thinks fit. In the given scenario it has been stated that WaldmartLtd is proposes to issue bonus shares to their existing shareholders and increasing theirdividend as well to $1.25 cents which is more then last year's dividend with 25%. on the otherhand, Jim Smith is the manager of better super Ltd who holding 4% share in the Waldmart.This person is also unhappy with the proposal of company related to issue of bonus share(Hillier, Grinblatt and Titman, 2011). TASK1 The rights of the company is mentioned in their constitution so that, they have tomaintain their performance according to their rules and regulation which are mentioned inthat. They have to follow various types of rules and regulation in order to smooth running ofbusiness and provide proper satisfaction to their shareholders. In the given scenario it isstated that Waldmart proposes to issue bonus share to their existing shareholders up to $1.25which 25% more then last year's dividend. According to the constitution of Waldmartcompany is able to issue bonus share to them. Further, organization have a power to issue andthey can issue whenever they think fit. Because constitution of this company give the powerto issue bonus share. But share holders having no rights to compel them for not to issue theshare in next AGM (Annual General Meeting). AGM is held by every company once in ayear in which they take major decisions in this this meeting after discussion with othermembers (Gaughan, 2010). Every shareholders having a right to attend and and present theirviews on that as well through which they are able to take part in major decision of thecompany. Constitution of organizations has mentioned various types of rights and duties whichis have to fulfil the by company as well as by its members. If they not to do so they aredirectly liable for the punishment (Chen, 2011). Thus, organization issue this type share whenthey have excessive profit. According to given scenario it is clear that Waldmart proposes toissue bonus according to the constitution which is not in against of it. On the basis of law
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