Background Carcraft Ltd is a company established by the smash repair industry in Australia. Smash repairers fix and repair cars after they have been involved in an accident. Most of the revenue of the smash repair business comes from a small number of insurance companies and car paint is their biggest cost. The industry is very fragmented, comprising many small businesses across Australia Therefore, the individual smash repairer businesses had very little bargaining power either with the insurance companies or with their suppliers. In order to combat this, Carcraft Ltd was established and aims to negotiate better prices for the smash repairers for their paint and other supplies which they could not do individually due to their size. The structure of Carcraft Ltd is as follows Directors 4 shareholder Em ees Noelle, the Carcraft Ltd representatives plus General Manager and 2 Noelle administration staff Shareholders 40 individual smash repairer businesses (equal shareholding The income of Carcraft Ltd comprises rebate income from the paint suppliers as well as investment income. The rebate income is calculated as a fixed of all the paint that each of the shareholder businesses acquire from the main paint supplier and is paid every July based on the paint costs of the prior financial year. Shareholders are generally only provided with financial statements/financial information at the Annual General Meeting ("AGM") and the company is NOT listed. Carcraft Ltd has a policy of paying out dividends annually to the shareholders as well as a small proportion of rebates to shareholders in proportion to their contribution to the rebate income. Carcraft Ltd has recently acquired a commercial rental property with bank funding. As a result of the funding, the bank has imposed a debt covenant of a Current Ratio of at least two