Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bricks Pty Ltd manufactures bricks and supplies them to builders across Australia. The company does not have a constitution and instead relies on the replaceable

Bricks Pty Ltd manufactures bricks and supplies them to builders across Australia. The company does not have a constitution and instead relies on the replaceable rules in the Corporations Act. Due to a shortage of raw material, sales to builders are falling and the company is not making a profit. The board of directors decide that the company will close down its brick business entirely and start a new and separate company instead. There are four directors in Brick Pty Ltd, they all own 25% of the shares each. One of the directors, Amy, disagrees with shutting down the company and has indicated that she will not vote for a resolution that allows for this to happen. REQUIRED: Advise the directors as to the process of calling a directors meeting and tabling a resolution to shut down the company. You must discuss whether Amy's 'no' vote will prevent the company from shutting down. Cite the Corporations Act in your answer.

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

The Legal Environment Of Business A Managerial Approach Theory To Practice

Authors: Sean Melvin, Enrique Guerra-Pujol

4th Edition

1260247805, 978-1260247800

More Books

Students also viewed these Law questions

Question

Why is the bound on the error of estimation an important number?

Answered: 1 week ago

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago