Australian Farms Pty Ltd has been operating in the Goulburn area of NSW for over 30 years. It has assets in excess of $100 million and it employs 120 staff. The local school wants to raise money to build a new classroom with state-of-the-art computers. Richard Generous is one of the Directors and would like the company to donate $30,000 to pay for the classroom. He has spoken to the school board and they have indicated they will name the classroom after him. He had been a student at that school. John Tighte, one of the other 4 Directors does not think this is an appropriate use of corporate funds. He is concerned the company might not have enough ready cash to donate such a large sum. The other 3 Directors usually vote with Richard and seem likely to vote in favor of the donation. However, they would first like to inspect the financial statements before finally deciding. Required: Advise these 3 directors on whether they are entitled to inspect the financial statements and whether they can approve the donation? Your answer must refer to relevant sections and decided cases and be set out using the IRAC Framework.

PLEASE USE IRAC FORMAT