I have been asked to interpret or translate into plain English the following Article in the Articles of Association of a Private Ltd Company. The shares are held separately by the Shareholders and the Company is still governed by Table A CA 1948.
'' The shares shall be under the control of the Directors, who may allot and dispose of or grant options over the same to such persons, on such terms, and in such manner, as they think fit''.
Does this article give the Directors the right to confiscate the existing shares of a recently deceased member, or does the term ''allot'' mean only that they can issue new shares? There is no mention of the Directors having pre-emptive rights and there is no Shareholders' Agreement
... and the ones that won't