Huey, Dewey, and Louie are the only shareholders of Duck Pty Ltd. Huey and Dewey

Question

Huey, Dewey, and Louie are the only shareholders of Duck Pty Ltd. Huey and Dewey hold 85% of the voting rights in the company. They want to prevent the shares of Duck Pty Ltd being sold to a competitor company. They can achieve that by

Select one:

a.
obtaining the written consent of all existing members, and passing a special resolution altering the constitution to provide that shareholders in Duck Pty Ltd are not permitted to transfer their shares to any competitor companies, unless the transfer is approved by the general meeting.

b.
passing a special resolution altering the constitution to provide that shares in Duck Pty Ltd aren’t transferable.

c.
passing a special resolution altering the constitution to provide that shareholders in Duck Pty Ltd are not permitted to transfer their shares to any competitor companies, unless the transfer is approved by the general meeting.

d. requesting the directors to pass a board resolution that shares won’t be transferable to competitor companies.

e.
applying the replaceable rule in the Corporations Act 2001 (Cth) (s 141) that provides for this.

Explanation / Answer

They can achieve the same by

e. applying the replaceable rule in the Corporations Act 2001 (Cth) (s 141) that provides for this

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