A general meeting of ABC Bhd, whose sole object was the manufacture of plywood, was held last week. Three special resolutions were passed at the meeting.

(b) The second resolution was to alter the company’s articles to empower the directors to compulsorily purchase the shares of any member who runs a business which is in competition with the business of the company. Mat, a member of ABC Bhd, runs a business which competes with the business of the company. He seeks your advice on the validity of the said resolution.Required:Advise Mat. (3 marks)