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Removal of directors by shareholders

Removal of Directors by Shareholders Sample Clause

  1. Removal of Directors by Shareholders. Subject to the right of any class or series of stock entitled to elect Directors separately, any Director may be removed from office, without assigning any cause, but only by the affirmative vote of the holders of at least 80 percent of the combined voting power of the then outstanding shares of stock entitled to vote generally in the election of Directors.
  2. ute book
  3. The Companies Act, No 71 of 2008 (Companies Act) regulates the removal of directors. In terms of the Companies Act, a director may be removed either by the shareholders or by the board of directors
  4. A staggered or classified board is one instance in which removal by shareholders during a director's term can be limited to for cause removal. A staggered board is a hostile takeover defense where directors' terms do not end at the same time; instead, the terms expire over a period of years, a few directors at a time
  5. These should be reviewed carefully, and may contain a number of options for removal of a director, for example by way of shareholders giving written notice to the company. If there are no simpler options available, the Companies Act 2006 (the Act) provides a mechanism for shareholders to remove a director who refuses to step aside by passing an.

A director removal for cause happens when the board and the shareholders of a corporation decide to remove a director from his or her position on the board of directors for a specific reason. What Is a Board of Directors? The board of directors is an essential part of any corporation As per Company Act Shareholders can Remove a Director from the Company before the expire of his tenure, except appointment by Central Govt. Removal requires filing of same with MCA, Roc scrutinises every removal with care.We would suggest you to hire a Company secretary service to take care of the issue The removal of a director of a company can arise in three ways: (1) statutory removal by shareholders; (2) statutory removal by directors; and (3) removal in accordance with MOI. In terms of section 71(1) of the Act a director may be removed by an ordinary resolution of the shareholders at a shareholders meeting The director is incapacitated and he/she is unable to perform his/her functions as a director, and he/she is not likely to regain such capacity within a reasonable period. Removal by the Shareholders. The Shareholders of a company may remove a director at a shareholders meeting with an ordinary resolution (over 50%)

Removal of directors by shareholders. (1) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. (2) If a director is elected by holders of one or more authorized classes or series of shares, only the holders of those classes or series of. The procedure for such a removal entails the passing of a resolution by the shareholders at a shareholders meeting. However, in terms of the Act, the director concerned must be given notice of the meeting and the resolution and afforded a reasonable opportunity to make a presentation to the meeting before the resolution is put to a vote The board or other directors cannot remove a director. This prevents a majority of public company directors from removing a director without the agreement of shareholders. Any resolution, request or notice of any of the directors of a public company which purports to remove another director is void (s 203E). This means that so called 'pre This Shareholders Resolution (Removing Corporate Directors) is used when the shareholders of a corporation authorize the removal of a director at a formal meeting. This resolution sets forth the date of the meeting, the presence of a quorum and that it is in the best interests of the corporation that a director be removed Public Companies. Shareholders in a public company can also remove a director by following the process set out in the company's constitution. However, despite anything written in the company's constitution, section 203D of the Corporations Act provides for the following process to remove a director.. If the shareholders of a public company want to remove a director, they must first give.

A company's shareholders can always remove a director by following a formal process set by law. This generally involves the shareholders having to pass an ordinary resolution agreeing to the removal of the director (ie a majority of the shareholders agree to the removal) Special notice must be given to the director concerned and the shareholders of the company at least 28 days before the general meeting at which the shareholders will vote on the ordinary resolution. It's crucial to get a sample letter for removal of director If your board decides to remove a board director for any reason For convenience, the relevant provisions of s71 read as follows: 71. Removal of directors: (1) Despite anything to the contrary in a company's Memorandum of Incorporation or rules, or any agreement between a company and a director, or between any shareholders and a director, a director may be removed by an ordinary resolution adopted at a shareholders meeting by the persons entitled to. Removal of directors is not always the easiest process but it is sometimes necessary to protect the company's interests. The most important thing for shareholders and directors to remember when trying to remove a director, is that they are dealing with a person, and so there is always the potential for conflict

Kalfa Law How Do Shareholders Remove a Director From a

A director may be removed by the shareholders only at a meeting called for the purpose of removing that director and the meeting notice must state that the purpose, or one of the purposes, of the meeting is removal of the director. [PL 2001, c. 640, Pt. A, §2 (NEW); PL 2001, c. 640, Pt. B, §7 (AFF). Removal of Directors: Removing a Director from a Company Thinking of Removing a Director? Make Sure You Get It Right! The principal role of a director (or manager) is to manage a company in such a way as to maximise the benefits to its shareholders (or owners), whilst ensuring that the company complies with all applicable laws and regulations

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A director may be appointed by the Board of Directors, unless the Memorandum requires shareholder approval. In order to appoint, resign or remove a director, please follow these steps: Register as a Custome Summary: Company Law - removal of a director at a shareholders meeting - ss 61(3) and 71(1) of the Companies Act 71 of 2008 - shareholders requisition shareholders meeting to consider removal of a director - shareholders subject to court order interdicting them from voting on their shares - whether they are entitled to act in terms of. Expulsion of Managing Director by Shareholders. A company is an artificial individual, it is overseen by the Board of Directors of the Company i.e., in connection to the company, implies the aggregate body of the directors of the company. To pass an ordinary resolution for the removal of the Director. For public companies, shareholders can also remove a director by passing a resolution at a meeting, even if the company's constitution or shareholders agreement says otherwise. However, unlike private (proprietary) companies, a director of a public company can't be removed by another director

Removal of a director by shareholders - to give reasons or

Directors serve at the pleasure of shareholders and consequently shareholders are entitled to effect removal of directors without any specific cause. Whilst the Companies Act accords shareholders with a power to remove directors for undisclosed reasons, it has at the same time laid down the procedure to be followed before a director concerned. Although affording the director a right to be heard, the Companies Act does not require that the shareholders have a reason to remove the director. Statutory removal of a director by the board. The Companies Act provides for the removal of a director by the other directors on the board only in specific circumstances Absolutely. Shareholders have a legal right to remove director of the company in general meeting by passing Ordinary Resolution as per Sec 169, chapter 7 of the Companies Act, 2013. This legal right cannot be hampered by MOA and AOA of the company. Removal of director under section 169. Sec 169 of the Companies Act, 2013 prescribes in detail.

Adding and Removing Directors on a Board Harvard

A director can only be resigned by a Special Resolution of the shareholders, which requires at least 75% of the shareholders to agree to the removal of a director. In the scenario you describe above, it would appear you have been unlawfully removed as a director, as no other party within the company could have over 75% of shares Removal of directors. (a) Removal by the shareholders.-- (1) Unless otherwise provided in a bylaw adopted by the shareholders, the entire board of directors, or a class of the board where the board is classified with respect to the power to select directors, or any individual director of a business corporation may be removed from office without. (1) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. (2) If a director is elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to remove the director. (3) If cumulative voting is authorized, a director may not be removed. Shareholder activism is a growing trend among listed companies. Sometimes, the actions of directors are contrary to the wishes of shareholders or shareholders feel that the incumbents are not performing to the level expected, and a change in board composition is necessary Section 8.08. REMOVAL OF DIRECTORS (a) Subject to subsection (b) of section 8.06 and except as otherwise provided in the articles of organization or bylaws, the shareholders may remove 1 or more directors with or without cause. (b) If a director is elected by a voting group of shareholders, only the shareholders of that voting group may.

SEBI has proposed changes to strengthen the role of independent directors in listed entities and protect minority shareholders. The proposed changes include a dual vote process for appointment, reappointment and removal of independent directors. Full disclosure of their resignation letters. And, a move consider reintroducing long vesting ESOPs as part of independent director remuneration Founder of UK-based airline easyJet Sir Stelios Haji-Ioannou is calling on shareholders to vote for the removal of four out of 11 of the company's directors. The call, made yesterday, is in a bid to stop their equity from becoming 'worthless' by December 2020 duties. The two primary mechanisms through which shareholders can remove a director are shareholder meetings and court orders. This paper provides an overview of both of these possible avenues for the removal of a director. 1. Removal of Directors by Shareholders Meetings For a business corporation, the power of shareholders to remove directors. The Removal of Directors by Shareholders Until passage of the Companies Act, 1948, shareholders in a British company were unable to remove a director before the expiration of his term of office unless provision for such removal was made in the company's Articles of Association.11 Without suc

Removal of Company Directors by Ordinary Resolution

  1. The shareholders elect the director of a company for managing the affairs of the company in accordance with the provisions of Companies Act 2013 (hereinafter the act). The Board of Directors or shareholders can remove the director of a Company under section 169 of the act. Here in this article, we will discuss the removal of director
  2. When a Shareholder Is an Employee of the Company. The controlling owners can for the most part fire shareholders who do not have control of the business. The same procedure is used regardless of the fact that the shareholders are on the Board of Directors. A vote may be required to remove someone from the Board of Directors
  3. Removal of directors by shareholders. (a) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. (b) If a director is elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to.
  4. shareholders and a director. The removal of a director by the shareholders must follow a similar procedure to that followed when the board of directors removes a director.10 Adetailed discussion of the removal of a director by the shareholders of a company is beyond the scope of this article.11 There ar
  5. (1) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. (2) If a director is elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to remove him or her. (3) If Continue reading Removal of Directors by Shareholders of a.
  6. Shareholder activism is a growing trend among listed companies. Sometimes, the actions of directors are contrary to the wishes of shareholders or shareholders feel that the incumbents are not.
  7. (Bloomberg) -- Credit Suisse Group AG's top shareholders have called for the removal of key board members ahead of the bank's annual general meeting, after mounting losses linked to a failed hedge-fund further eroded confidence in the lender's leadership

What Is a Director Removal for Cause? - UpCounse

  1. Whilst the directors control the day to day running of the company, some of the most important decisions are left to the shareholders. These include the decision to remove directors in some cases, change the rights attaching to shares or wind up the company. You may also have the right to share in the profit that the company makes
  2. At such meeting, the shareholder(s) will vote on the removal of the Director. Before voting, the Director will be entitled to be heard on the resolution. The Director will be removed if those present at the EGM decide by majority vote (50% + 1) to remove him
  3. ation of the director who shall receive demand from executive officers to convene Board of Directors' meetings] Article 416I(1)(ni) 2-6. Provision regarding the director who convenes General Meeting of Shareholders, and the director who serves as chairman of General Meeting of Shareholders — 2-7
  4. In the Pretorius case the shareholders sought to remove directors from the company and gave the directors notice of the intended resolution. Subsequently at the shareholders meeting the shareholders voted to remove the directors. However, the directors challenged the removal on the grounds that the notice was defective
  5. Regarding removal of directors, it is suggested that in future the Hong Kong government may consider if there is a case to follow the Australian law that in a public company (which is usually listed) only the shareholders can remove directors as this can certainly give greater protection to independent non-executive directors
  6. Section 21-291 - Removal of directors by shareholders (MBCA 8.08) (a) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. (b) If a director is elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to remove that director
  7. Unless varied by the company's constitution or an agreement between the director and the company, shareholders of a public company may remove a director by ordinary resolution (i.e. more than 50% of votes in favour of removal); When the shareholders call a general meeting to initiate the process of removing the director, special notice must.

Procedure for Removal of Director under Companies Act, 201

In some circumstances, the removal of the director may be grounds for petition under CA 2006, sec994 (the unfairly prejudicial conduct provision) under which the court may order the remaining shareholders (or indeed, The Company itself) to buy the ex-directors shares Whenever the holders of any class or series are entitled to elect 1 or more directors by the certificate of incorporation, this subsection shall apply, in respect to the removal without cause of a director or directors so elected, to the vote of the holders of the outstanding shares of that class or series and not to the vote of the outstanding. Shareholders have no direct management rights but can appoint and remove directors by ordinary resolution (notwithstanding anything to the contrary in the constitution of the company or anything to the contrary agreed between the company and the relevant director), and shareholders may be required to approve certain corporate actions and.

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However, should shareholders want to remove a director from office, there is a specific process under section 168 of the Companies Act 2006 that they can follow to do this. This subfolder focuses on this statutory removal process. A guidance note provides a broad overview of the statutory procedure and steps that must be followed in order to. 19973) have adopted provisions empowering courts to remove directors elected by shareholders, apparently under the assumption that shareholders sometimes would like to, but cannot, remove directors themselves. This new removal power granted to courts is extraordinary in that it usurps the inherent voting rights of. Public Delaware corporations with similar supermajority requirements in their bylaws for removal of directors should repeal them to avoid shareholder suits. In Frechter v. Zier , No. 12038-VCG, 2017 WL 345142 (Del. Ch. Jan. 24, 2017), Vice Chancellor Sam Glasscock III addressed a shareholder derivative suit against Nutrisystem Inc. and members.

Removing a Director Under the Companies Act 71 of 200

  1. ed by the laws of the jurisdiction of incorporation
  2. § 29-306.08. Removal of directors by shareholders. (a) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors shall be removed only for cause. (b) If a director is elected by a voting group of shareholders, only the shareholders of that voting group shall participate in the vote to remove that director
  3. Form DIR-8-Intimation by Director about his disqualification. Making Necessary entries in Register of Directors Company should make necessary entries regarding appointment/removal of Director in the Register of Director and Key Managerial Personals and Register of contracts and arrangements in which directors are interested in Form MBP-4

How to remove a director of a company in South Africa

The changes to the law on the removal of directors to be made by the Companies Act 2006 (2006 Act) are now dealt with in the Practice note, Companies Act 2006: Directors. Free Practical Law trial. To access this resource, sign up for a free trial of Practical Law. Free trial Removal of Director by shareholder . A company can remove its director before the expiry of the period offer by passing a shareholders resolution. The company must send the notice to all the members. Also, the company has to intimate the director about the removal. Such a director will have an opportunity of being heard

notice of the removal of the directors, as less than 28 days' special notice of the EGM was given. However, it was held that the requirement for a special notice of a resolution to remove a director would only be required if the removal of directors was made pursuant to section 206 of the CA 2016 Below, we explain how to transfer shares and remove a shareholder from a limited company. Our Complete Package - the perfect way to form a company. Shareholders can leave a company at any time after incorporation for any number of reasons, whether to recoup an investment, remove their association from a company, or as a result of illness or death According to the Companies Act, the removal of a company director is through an ordinary shareholder's resolution. This is provided if there are no other provisions in the Company's Constitution. The shareholders have to give the director 14 days written notice unless this requirement is agreed to be waived by 95 per cent of the votes

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Removal Directors in Nigeria. The company is then required to submit a copy of the resolution taken in the board meeting or general meeting of the shareholders, along with CAC 7 (particulars of Directors) within 30 days from effect of the resolution to the CAC I have seen many situations in which a company fires an employee, but the ex-employee is still a shareholder, director, and/or officer. Or, the company may try to remove a person's stock ownership, but the person is still a director or an officer When are shareholders empowered to remove directors from office? This is an important governance issue and is related to the balance of power between shareholders and directors. In the case of a public company, s 203D(1) of the Australian Corporations Act 2001 (Cth) provides that shareholders may by ordinary resolution remove a director from.

RCW 23B.08.080: Removal of directors by shareholders

  1. The chairman responded by convening a shareholders meeting to remove the managing director from his office as a director in accordance with Part 10 of the Companies Act 2006. Now, Section 168 provides that a company may, by ordinary resolution at a meeting, remove a director before the expiration of his period of office, notwithstanding.
  2. Section 414-198 - Removal of directors by shareholders (a) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. (b) If a director is elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to remove the director
  3. § 55-8-08. Removal of directors by shareholders. (a) The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. (b) If a director is elected by a voting group of shareholders, only the shareholders of tha
  4. Removal of Board Members. Each Shareholder also agrees to vote all of his, her or its Shares from time to time and at all times in whatever manner as shall be necessary to ensure that (i) no director elected pursuant to Section 5.1 of this Agreement may be removed from office unless (A) such removal is directed or approved by the affirmative vote of the holders of fifty percent (50%) or more.

According to a bourse filing today, Menang said its board received special notices from shareholders Siow Pei Tee and Nicholas Pun Chee Cheang, holding 0.01% and 4.97% stakes in the company respectively, to move the resolution for the removal of Shun, who is a non-independent non-executive director BOARD OF DIRECTORS' RESOLUTION REMOVING AN . OFFICER OR DIRECTOR . Pursuant to a duly made and seconded motion, a majority of the Board of Directors of _____ (hereinafter referred to as Corporation) voted to adopt the following resolution

Creating a shareholder removal resolution should be your next step. After drafting the resolution, you should present it to your corporation's board of directors. Depending on your shareholders agreement, you may instead need to present the resolution to a specific group of shareholders KUALA LUMPUR: Four shareholders of Artroniq Bhd are seeking to replace the company's four existing directors with new ones The provision at issue provided that directors could be removed by shareholders for cause. However, pursuant to Section 141(k) of the Delaware General Corporation law, stockholders may remove directors with or without cause. After the plaintiff filed for summary judgment, the defendant-corporation amended its bylaws to remove the. Removal by the Board of Directors As noted above under Corporate Statutes, normally only the shareholders of a corporation can remove a director by way of an ordinary resolution at an annual or special meeting. It is submitted that the board, committee of the board or individual member of the board has no authority to remove a director

This article will briefly set out the requirements and process to remove a director in circumstances where the shareholders are directors and there is a deadlock at both levels. Section 71 of the Companies Act No. 71 of 2008 sets out various ways to remove a person as a director of the company. In terms of section 71, a director may be removed The SC also cautioned that it would result in corporate shareholders who nominated directors to the boards of companies being regarded as shadow directors. This might result in corporate shareholders owing duties of care to one another in closely held joint venture companies. Vacation of office and removal of directors [amendment of section.

New CIPC requirement for the removal of a director by

Shareholders who do not have control of the business can usually be fired by the controlling owners. The same process is followed even if the shareholder is on the board of directors. A vote may be required to remove someone from the board of directors The majority shareholders can remove a director by passing an ordinary resolution (51% majority) after giving special notice. That much is fairly straightforward. But take care, since if the director is also an employee you will need to terminate their employment. A director who has been dismissed may have a claim for unfair dismissal Shareholders have no such direct power, and a shareholders' resolution purporting to remove a managing director as manager, in my opinion, will be either a nullity, or, at best, only a recommendation to the directors under section 137 (4). It is my view that there are, however, four instances in which the shareholders may effect the removal. A shareholder has the right to petition the court for the removal of a corporation's director if that director is acting in bad faith and not in the best interests of the corporation and its shareholders. A lawsuit seeking the removal of a corporate director is an equitable remedy and the party bringing such an action must do so with clean hands

The shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. If a director is elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to remove him or her. If Continue reading Removal of Directors by Shareholders of Florida. Members (shareholders) can remove a director by resolution (s 203D (1)). This is despite anything in the company's constitution, an agreement between the company and the director or an agreement between any or all members of the company and the director. If a director is the representative of a particular class of shareholders or debenture. The roles are director, employee and shareholder. Need legal advice? Call 0845 003 5639. The Role of Director . The first thing to do is to look at the company's Articles. In some companies, these may say that a director can be removed by the Board of Directors; otherwise it is the shareholders who can remove a director In the case of removal by the board or by the Companies Tribunal, the procedure to be followed depends on the number of directors on the board. Where there are three or more directors, a board resolution will suffice; for two or less directors, the Companies Tribunal must determine the removal of the director on application by a shareholder

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Removal of directors The shareholders are supreme for the appointment of directors. Similarly, they have the powers to remove a director appointed by them by passing an ordinary resolution. The majority in number of votes cast is the final nail in the coffin for removal of a director. This does not apply to the appointmen The bylaws prohibited removal of directors without cause, except in accordance with the shareholders' agreement. The shareholders' agreement dedicated one of the at-large seats to the Chief Executive Officer (CEO), who was empowered to designate two independent, outside directors, with the Investors' approval, to fill the other two (D) If the shareholders do not have the right to vote cumulatively in the election of directors, then, unless the articles, the regulations adopted by the shareholders, or the regulations adopted by the directors pursuant to division (A)(1) of section 1701.10 of the Revised Code expressly provide that no director may be removed from office or.

Resignation or removal of a directo

Directors or trustee may be removed even without cause . The legislative policy is that the shareholders shall be the ultimate masters, not the directors. The shareholders should be clothed with the power of judging the competency and fitness of the directors and of choosing a board that will carry out of their business policy Shareholder Right to Remove Directors. Resolved: Shareholders ask our board to undertake such steps as may be necessary to permit removal of directors by a majority vote of shareholders with or without cause. Supporting Statement: Best corporate governance practice is to allow shareholders, by majority vote, to elect their directors and allow. According to Section 169, a company may remove a director by way of an ordinary resolution (which is by a simple majority) passed in a general meeting of the shareholders of the company. In the normal course, any proposal to remove a director is initiated through a special notice, which is by members of the company holding at least 1% of the. Dear XXXXX:You have asked if your removal from your Federal Credit Union's (FCU) board of directors was appropriate. No, removal of a sitting director requires a membership vote at a special meeting held for that purpose. A director's seat may be declared vacant by the board, but only if a director fails to attend regular board meetings or otherwise fails to perform his or her duties as a.

Shareholders Resolution (Removing a Director

For a sample ordinary resolution to remove a director from office, see precedent: Removal of a director—ordinary resolution. Shareholder activists may propose the removal of a director (or the entire board of directors) if they feel that there have been leadership or corporate governance failings The shareholders of the company can remove a director by following a process which is prescribed by the law. As the articles of the company provide that the directors have to retire by the process of rotation and in which 1/3 of the directors should resign from the office at the general meeting of the company and they can only continue if re.

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How to Remove a Director from a Company LegalVisio

In Frechter, the Plaintiff alleged that a provision in an amendment to Nutrisystem's bylaws that purported to enable shareholders to remove directors only by the vote of not less than 66 2/3% of the voting power of all outstanding shares was inconsistent with the majority voting threshold for the removal of directors under Section 141(k. (a) Except as otherwise provided by the certificate of formation or bylaws of a corporation or this subchapter, the shareholders of the corporation may remove a director or the entire board of directors of the corporation, with or without cause, at a meeting called for that purpose, by a vote of the holders of a majority of the shares entitled. Shareholders can also remove directors by way of an ordinary resolution under CA 2006, section 168(1), notwithstanding any provision to the contrary in any agreement between the company and the.

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KUALA LUMPUR (April 19): A group of Artroniq Bhd (formerly Plastrade Technology Bhd) shareholders wants to have the company's entire board of directors removed, and appoint new ones in their stead. In a bourse filing, Artroniq said four shareholders - Tee Yen Chong, Yeoh Guan Fook, Lee Pei Mei and Chew Hun Seng - who claimed they collectively control at least a 10% stake in the company. As the directors are appointed by shareholders, a director may also be removed by an ordinary resolution adopted at a shareholders meeting by the persons entitled to exercise voting rights in an. Last updated on February 11th, 2021 at 10:33 am. Shareholder disputes can arise in a number of ways, with common reasons being a fall out over the management and direction of the company, shareholders not pulling their weight or no longer working with the business, personal problems affecting business relationships, conflicts of interest, (lack of) dividend distributions, breach of a director.

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