corporate and business law

Business Scenario
Your friend moved to the UK from the US a few years ago. The family runs a successful big tour company in the hospitality industry (Legacy Tours Limited). Your friend, Amanda is worried that the company has been unable to run as a result of the coronavirus pandemic. The company has two founders, your friend owns 60% of the share capital, the founder, Brenda kept 40% of the shares, and both are directors of the family business. Relations between the shareholders began to go sour, Brenda found it impossible to get on with Amanda, who blocked every move to invest in the company before the pandemic. The family is worried about the future of the company and its staff particularly because they owe money to the bank and this is secured against the assets of the company. Business was really good before the crisis began but the shutdown has been crippling and they must think about the future. In July this year, Brenda resigned his directorship because of continuing family dispute and started to build a team of contacts in order to start a new company from scratch. Amanda was irate.

QUESTIONS=

Advise your friend, Amanda on:
1..What points of law in Companies Act 2006 are raised by this legal scenario? How would the court be likely to judge?

2…The goals of company rescue in dissolution and whether these may be relevant for Legacy Tours Limited.

3..The main differences between a Company Voluntary Arrangement (CVA) and administration procedure in insolvency.