1. Assume all the following facts can be proven. The directors of Abatole Ltd. held their last meeting on December 31 at 4:30 p.m., and it was conducted more like a party than a usual meeting. Nancy, a director, signed a contract to purchase land from Xenon Corp., of which Nancy is the sole shareholder. The directors also voted to issue more shares and sold them to 3 directors in order to give them voting control of the corporation.

Could a shareholder commence an action against Nancy? How? Explain. (4 marks)