Collins is an employee and a shareholder of a company. The company was incorporated in 2005 and adopts the full version of Table A of the Companies Ordinance (Cap 32) as its articles of association.Yesterday, Collins heard that the board of directors of the company intended to pass a resolution to terminate the employment contracts of all the employees who had worked for the company for more than four years (‘the Resolution’).On the following morning, as a shareholder of the company, Collins called the chairman of the board and demanded that the board not pass the resolution (‘Collins’s Demand’).Required:In relation to company law:
(a) Explain to the chairman whether the board must comply with Collins’s Demand. (5 marks)