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    Hi everyone, I was hoping if anyone could give me pointers in what I should be considering for this problem question? I'm thoroughly confused!


    Peppa and George are directors of Splashabout Ltd., a company which manufactures raincoats, wellington boots and other rainwear. Peppa owns 50% of the company’s shares and George owns the other 50% of the company’s shares. The company’s issued share capital is presently £1000, with the share capital divided into 1000 shares with a nominal value of £1. Peppa and George are keen to develop the company’s business and have two potential offers of additional investment.
    Suzy has offered to invest £10,000 in the business. In exchange for this she would like to be assured of a seat on the company’s board. Peppa and George are keen to secure Suzy’s investment, but are concerned to ensure that the company’s business remains focused on rainwear and associated equipment. They are willing to allow Suzy a seat on the board, but wish to be sure that Suzy does not obtain absolute power over the destiny of the company through her large investment.
    Delphine has offered a further £20,000 of investment. Delphine has made it clear that she has no desire to be involved in the running of the business, but would like to ensure that her money remains as safe as possible.

    1. Advise Peppa and George on the ways in which Suzy and Delphine’s potential
    investments can be accommodated in light of the wishes of Peppa, George, Suzy
    and Delphine.

    Any guidance would be appreciated. Thank you!
 
 
 
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Updated: April 8, 2011

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