Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bob the only foreign national shareholder in Daily. Over the next two years Bob secures a position on the board and begins to cause trouble

Bob the only foreign national shareholder in Daily.

Over the next two years Bob secures a position on the board and begins to cause trouble by secretly leaking information to the press in order to embarrass the company and keep the share price low. Bob also votes against every proposal put forward by the board at the members' meetings. Daily's board is keen to remove Bob from the board and the share register, so they devise a plan (codenamed 'Project Lightening') to alter the company's constitution to totally remove Bob from the company. The company proposes to hold an extraordinary members' meeting on 1February 2022 to vote on the following resolution:

Proposition 1 that the company's constitution be amended so as to provide that any shareholder who is not, as of 1 January 2022, an Australian citizen or (if a corporation) whose main residence is not in Australia must divest themselves of all shares in Daily Ltd by selling their shares to the company at $2 per share.

Proposition 2 that if proposition 1 is not carried, the company's constitution is to be amended by providing that any shares held by persons other than Australian citizens on 1 January 2020 will be stripped of their voting rights immediately.

Advise on what remedies Bob may have in this situation. Include in your response an assessment of how Bob's own conduct is relevant for determining whether he should have a remedy.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tort Law And Alternatives Cases And Materials

Authors: Marc Franklin, Robert Rabin, Michael Green, Mark Geistfeld, Nora Engstrom

11th Edition

164708489X, 978-1647084899

More Books

Students also viewed these Law questions

Question

show me step-by-step answers

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago

Question

Pay him, do not wait until I sign

Answered: 1 week ago