1. Cash Cow Ltd has 500,000 fully paid-up ordinary shares which have been valued at $5.00 per share by an independent expert less than a month ago. The company has been very profitable and has consistently paid generous dividends to its shareholders. As part of its restructuring exercise, the company wants to cancel the shares held by its minority shareholders and pay them $5.50 for each share cancelled. What legal requirements under the Corporations Act must be followed for the company to cancel the shares of the minority?
2. Scrooge Pty Ltd has five shareholders and each of them hold 20% of the company's shares. Three of the shareholders, Tom, Dick and Harry, are also directors of the company. The remaining shareholders are Tina and Rina. Despite the company making healthy profits and enjoying a substantial cash reserve, it has adopted a very conservative dividend policy. Every year, it restricts its dividends to 10% of its net profits after tax. Tina is unhappy as she thinks it's unfair that the directors have been paying low dividends, while giving themselves generous salaries increases. She has tried selling her shares to the other shareholders, but they are not prepared to buy them. Advise Tina.
3. Settlers Pty Ltd is a company engaged in farming in the South West and owned by the Settlers family. John, the father is the Managing Director and his three children, Abel, Bess and Cain, are directors. Doris, Cain's wife, is the Company Secretary. Cain borrowed money for his personal use from Careless Bank and as security gave the bank a mortgage over a property owned by the company. The mortgage document was executed under the common seal of Settlers Pty Ltd and the fixing of the seal was witnessed by Cain and Doris. Shortly after receiving the loan proceeds, Cain and Doris left for South America without leaving any forwarding address. Is Settlers Pty Ltd bound by the mortgage contract?