Question
for many years andrew, bruce and chang conducted the business of electrical contractors as a partnership. in 2014, Sparkle pty ltd. was incorporated with the
for many years andrew, bruce and chang conducted the business of electrical contractors as a partnership. in 2014, Sparkle pty ltd. was incorporated with the purpose of purchasing and conducting the partnership business. The share capital of the company was held equally by andrew, bruce and chang who were also appointed directors of the company. The Company operated very successfully with substantial dividends declared in each year.
After Several years, the relationship between Anderw and the other directors deteriorated. Bruce and chang refused to talk to andrew. At a general Meeting of shareholders, Bruce and chang passed resolutions:
- removing Andrew as a director,
- determining that no further dividends be declared despite the continuing profitability of the company, and
- issuing further shares to bruce and chang thereby enabling them to pass special resolutions.
Advise Andrew what action, if any, he may be able to take?
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