The Memorandum of Association states that a company, in this case a private limited company, needs to have the members of the company to have at least one share each. This is being fulfilled by the three owners, David, George, and Nick who own certain amount of shares in their name, and includes at least one share ach with them. The memorandum states that it is required for every company to state their name if their registered office is to be situated in England, Wales, Wales or Scotland and also state the objects of the company. The memorandum states that any person or more willing to form a company needs to incorporate the company with or without any liability (Ukcorporator.gov.uk, 2014), which they have already done in which they do not have much liability but to themselves and not to all the shareholders. The memorandum also states that it must have the company type whether it is a limited company with unlimited liability, privet limited company with limited liability and this is being fulfilled by the three owners as they have declared it as a private limited company with limited liability. This means that they would not be liable for protecting extra ordinary loses incurred by the shareholders but in case of a deterioration or degrading, they may just repay the debts on their books. The memorandum being redundant since the introduction of the Articles of Association, it is required that the Articles are thoroughly read through to conduct the business in any manner. Nick feeling unsatisfied and unconfident in being able to get a fair price by selling his shares to the existing shareholders is legitimate but his conduct of not attempting to sell the shares to his partners or internal shareholders is not advisable. Before attempting to sell it to existing shareholders Nick trying to sell it directly to external shareholders and bringing an outsider is a violation of the Articles of Association which requires him to sell it to existing shareholders, failing which he can approach an outsider and sell his shares. Nick has violated the Articles, following which David and George can appeal in the court against the conduct of Nick trying to sell his shares to an outsider without informing them.