Butchers (Pty) Ltd has five (5) directors and several shareholders. One of its directors, Mr Baker, recommended that the company enter into a contract with a company named Candlestick-makers (Pty) Ltd. Mr Baker is the only director of Candlestick-makers (Pty) Ltd; he also holds 60% of its shares. You may assume that the memorandum of the incorporation (MOI) of neither company contains any altered provisions.
Consider the scenario above from the viewpoint of both companies and select the option that is false.
a.
The shareholders of Candlestick-makers (Pty) Ltd will have to approve the agreement by an ordinary resolution.
b.
Mr Baker will be required to disclose, inter alia, his interest in the contract and the general nature thereof, to the board of Butchers (Pty)Ltd.
c.
Mr Baker will be required to disclose his interest in the contract to the shareholders of Candlestick-makers (Pty) Ltd.
d.
The shareholders of Butchers (Pty) Ltd will have to approve the agreement by an ordinary resolution