Question
Anil, along with his wife, Billy, and family friend, Charlie, started a property development business in 2015. The main activities of the business are to
Anil, along with his wife, Billy, and family friend, Charlie, started a property development business in 2015. The main activities of the business are to purchase land and develop buildings, and sell these to clients, especially 'mum and dad' investors. The business is conducted through a corporate structure called Vision Property Investments Pty Ltd ("Vision"). Anil, Billy, and Charlie are the only shareholders and directors of the company. Anil is a director and secretary, Billy is a director, and Charlie is a director and solicitor of the company.
The constitution of "Vision" nominates that Charlie will be the solicitor for any land purchases or sales made by the company. The articles also provide that any disputes which may arise between the company and its members should be first referred to an arbitrator before there are any court proceedings.
In 2020, Anil and Billy met another solicitor, Doug, who they believed to be more efficient than Charlie and they appointed him (Doug) as solicitor for "Vision". Since then, Charlie has brought legal action against "Vision" over the matter.
Is Charlie entitled to challenge the Board's decision to remove Charlie from the position of company solicitor and the appointment of Doug, as company solicitor?
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