HA3021 Tutorial Questions On Corporations Law - Tutoring 2

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Week 9 – Question 4 (10 marks)

Joe is a company director in a proprietary company. He is proposing to put a resolution to his company that it buy out the smaller holdings. Joe reasons that there are a number of quite large shareholdings and many of the smaller members have little interest in the company. Joe does not want to force any member to sell their shares but would like to 'clean up the register' by buying out the smaller holdings.

Required:
Advise Joe on the legal implications of his plan.

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