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Student I.D.- 11207984 Company Law 1 Assignment 2004-2005 Question 1 Prepare a report for Bernie and the other shareholders on the issues arising from the proposed diversification into gliding and their chances of preventing Sid and Kenny from pursuing their plans [40 marks]. Answer To: Bernie and other Shareholders From: Mehtab Hamad Shabir As requested here is a report on the issues arising from the proposed diversification into gliding and the chances of the shareholders preventing Sid and Kenny from pursuing their plans. To start it may be worth noting that Sid and Kenny have not even discussed the issue of diversification with the other shareholders, even if they had they would have had the majority decision as they own 60% of the shares and therefore have a majority. This would therefore seem to be of little consequence. Firstly I will discuss the issues arising from the wishes of the remaining shareholders to block the proposed diversification. This is...

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