Birds Limited has three directors:Peacock,Sparrow and Vulture.

Explain the legal implication of each of the following situations:

(a) Vulture’s son has recently come of age and Vulture wishes to appoint him a director of the company.(4 marks)

(b) The company is considering the purchase of a substantial quantity of goods from Fly Ltd,in which Sparrow has a large shareholdings,though he is not a director.Peacock and Vulture are unaware of Spirrow’s interests in Fly Ltd.(4 marks)

(c) Because of adverse publicity about Peacock’s private life,Vulture and Sparrow wish to remove him as a director,since he refuses to resign.(4 marks)

(d) In view of the adverse publicity,Vulture and Sparrow decide to exclude Peacock from participation in the company’s affairs.(4 marks)

(e) The directors are advised by Wise & Co., the company’s auditors, that there is no possibility of the company trading at a profit in the foreseeable future and no reasonable prospect of it paying its debts.(4 marks)