Question
Frangipani Pty Ltd ('Frangipani') relies entirely on the replaceable rules in the Corporations Act, including the replaceable rule in s 198A. At a recent general
Frangipani Pty Ltd ('Frangipani') relies entirely on the replaceable rules in the Corporations Act, including the replaceable rule in s 198A. At a recent general meeting of members, the shareholders voted for the company to expand its business from online sales to physical stores, and they commanded the board to establish at least five Victorian physical stores during the coming year. The board of directors do not believe that adding physical stores would be a good move for the company, but they are also aware of the members' decision and directive. Select the response that provides the most accurate analysis of this situation: a. Applying the precedent in DFC of T v Austin (1998) ACLC 155, the shareholders' decision to requiring new physical stores would most be binding on Frangipani's board here. b. Applying the precedent in DFC of T v Austin (1998) ACLC 155, the shareholders' decision requiring new physical stores would be of no legal effect on Frangipani's board here. c. Applying the precedent in Automatic Self-Cleansing Filter Syndicate Co v Cunninghame [1905] 2 Ch 34, the shareholders' decision requiring new physical stores would not be binding Frangipani's board here. d. Applying the precedent in Automatic Self-Cleansing Filter Syndicate Co v Cunninghame [1905] 2 Ch 34 the shareholders' decision requiring new physical stores to would be binding on the board of Frangipani.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started