Question
Bed & Breakfast limited. a private limited liability company has declared $1M profit after tax. The board of directors have however decided to plough back
Bed & Breakfast limited. a private limited liability company has declared $1M profit after tax. The board of directors have however decided to plough back all the profit into expansion of the business. Mr. Bruce a shareholder in the company does not agree with this and is insisting that part of the profit be paid as dividends to shareholders.Mr. Bruce has also been advised by his stock broker to invest in another company by buying shares of the company because of its profit potential. Mr. Bruce cannot decide whether he should buy ordinary shares or preference shares and has come to you for advice.Advise Mr. Bruce on all issues arising from the case
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