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

Opinion Writing - Essay Example 3. I have also been asked to advise OTW in relation to a contract 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 going to succeed. The remaining three individuals are still hopeful that in the short to medium term, OTW will become profitable. 6. The first individual to leave the company was Alex who had sold some equipment to the company when it was formed. The equipment was bought at the price of  £8,000 which was its market price. OTW sold the equipment back to Alex at a price  £8,000 when he left. The transaction regarding the equipment is noted in board 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 company’s articles provides that the company’s 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 number of ordinary shares. 11. Stock transfer forms were