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Memorandum of incorporation of open sea voyages ltd

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Reference no: EM133039707

The Memorandum of Incorporation of Open Sea Voyages Ltd states that the company only has the capacity to construct and sell boats. The board of directors of Open Sea Voyages Ltd decides to buy a holiday apartment in Cape Town on behalf of the company.

Questions:

  1. Explain whether the contract of purchase and sale of the holiday apartment will be valid and binding on the company.
  2. Two of the shareholders of Open Sea Voyages Ltd, Christiaan and Themba are dissatisfied about the board of directors' decision. Indicate what remedies they have at their disposal under these circumstances.

Reference no: EM133039707

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