ordinary resolution

For several years John and Jack were the sole partners in a successful building firm. Ten years ago they formed a limited company. John and Jack were the only two directors. The company had an issued share capital of 100 £1 ordinary shares, and Jack and John each took 50 of these. Two years ago Jack’s son, Alan, was appointed a director of the company and Jack and John each transferred ten shares to Alan. Last year John discovered that the company had sold building materials to another company in which Jack and Alan are the only shareholders. John brought this matter up at a board meeting. Since the Alan and Jack have passed an ordinary resolution ratifying the sale of the building materials. Advise John of any rights which he might have.

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