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Case Study: The business of Beta Ltd ('the company') is that of a property developer. Alan, Cherry and Basil are the only Directors and shareholders of the company, each owning 100 shares. In addition, Alan has been appointed as Managing Director. The Articles of Association of the company contain the following clauses:(a) in the event of a resolution being proposed at a general meeting of the company for the removal from office of a Director, any shares held by that director shall carry the right to three votes per share;(b) James shall be the Company Secretary;(c) the Managing Director, Alan, shall have the power to veto any Board decision relating to the purchase or acquisition of any property. At a recent board meeting, Alan tried to exercise his veto after the Board decided to purchase a warehouse, but Basil and Cherry ignored Alan's veto. They then called a general meeting which passed a resolution ratifying the decision of the Board. Basil and Cherry are also considering calling another general meeting to remove Alan as a Director. James acted as the Company Secretary, but has since been removed.
Required: Advise Alan and James, using Case Law, as to whether they can rely on any of the above, based on the Articles of Association.
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