Company Law. Case Study Essay Example | Topics and Well Written Essays - 2500 words

Company Law. Case Study - analyze ExampleBackground Alison Belfield (AB) is a minority shareholder in Commercial Chemical Applications Limited (CCA). base on ABs concerns regarding the activities of directors of CCA and the company operations the following facts have come to light. Tom Stockley is a director in CCA who also owns 3% of the shares in Amalgamated Property Holdings Ltd (APH). He introduced the transaction to CCA and is lot in negotiations to buy out APH. AB feels that CCA is not faring well commerci wholey, being burdened with an overdraft of 3 million, profuse capacity and the need to ratiocination down five humiliateder plants around the country. Any move to ask APH could push CCA into insolvency. AB, having a financial and property background also feels that the proposed price of APH is too high and in her opinion the financial director, Rachel Nash has over-estimated the worth of APH by 500,000 to 600,000. But since Rachel is a chartered accountant by professi on, all other directors, who do not have a financial background, rely upon her judgement. APH also has a paltry track record of environmental issues, already having being convicted twice for allowing chemicals to leak into the nearby river and under close scrutiny of environmental authorities. The factory too is fairly old and requiring substantial expenditure for its refurbishment which whitethorn never happen. The acquisition of APH will inevitably result in the closure of the CCAs other small plants located in rural areas thereby causing loss of several hundred jobs with very shortsighted possibility of being re-employed.