Question
Hello, how to answer this question? ClearVisionLtd(CVL)isasmallunlistedinformationtechnologycompanyoperatinginBrisbane'soutersuburbs.Marlowisthemajorityshareholder,with67%oftheshares.TheremainingsharesareownedbySean(20%)andBecky(13%).EachofMarlow,SeanandBeckysitontheboardofCVL,butMarlowiseffectivelythegoverningdirectorofthefirm.TheconstitutionprovidesthattheobjectofCVListodeliverexpertadvicetobusinessesconsideringITinvestments.ItisthroughMarlowthatCVLprovidestheseservices.SeanandBeckytrustMarlowtorunthebusinessintheircollectiveinterests.Untilrecently,CVLwasafairlyunassumingcompany.ItsannualturnoverwassufficienttocoverMarlow'ssalaryandasmalldividendtoSeanandBecky,butnotmuchmore.Anyexcesswasreinvestedinbusinessitems,likenewcomputersandprograms.Then,somemonthsago,Marlowmade,whathethinkswillbeamajortechnologicalbreakthrough.WhilstcompletingaprojectforoneofCVL'sregularclients,hediscoveredanewtypeofblockchainthat,inhisview,couldhavesignificantapplicationsinthelucrativedefenceindustry.MarlowasksSeanandBeckywhethertheywouldbewillingtocontributemorecapitaltodeveloptheblockchainproductfurther.Bothrefuse.SeantellsMarlowthat'itwouldbeunethicaltomakemoneyfromanindustryofwar'.Beckysaysthattherearefewguaranteesthattheresearchwouldyieldanyreturn:sheregardsthenewtechnologyastoospeculative.Marlow,therefore,approachesPolly,hisnewromanticpartner,aboutthepossibilityofinvestment.PollyiswillingtoputupthecashbutonlyiftheprofitsaresplittwowaysbetweenherandMarlow.MarlowisveryhappyaboutPolly'swillingnesstosupporttheproject,inpart,becausehelovesherandbelievesthattheinvestmentwillbeanexcellentuseofhersavings.However,heisalsoangryatSeanandBeckyandquitewillingtocausealittlepaintothemthroughCVL.MarlowseeksyouradviceastowhetherhecanresignfromCVLandincorporateanewcompanythroughwhichtoconducttheblockchainbusinesswithPollyandhimselfasthesoleshareholdersanddirectors.WhatisyouradvicetoMarlow?Howwouldyouranswerchange,ifatall,wereCVL'sconstitutiontocontainaclauseidenticaltos194CorporationsAct2001(Cth)?
Hello, how to answer this question?
ClearVisionLtd(CVL)isasmallunlistedinformationtechnologycompanyoperatinginBrisbane'soutersuburbs.Marlowisthemajorityshareholder,with67%oftheshares.TheremainingsharesareownedbySean(20%)andBecky(13%).EachofMarlow,SeanandBeckysitontheboardofCVL,butMarlowiseffectivelythegoverningdirectorofthefirm.TheconstitutionprovidesthattheobjectofCVListodeliverexpertadvicetobusinessesconsideringITinvestments.ItisthroughMarlowthatCVLprovidestheseservices.SeanandBeckytrustMarlowtorunthebusinessintheircollectiveinterests.Untilrecently,CVLwasafairlyunassumingcompany.ItsannualturnoverwassufficienttocoverMarlow'ssalaryandasmalldividendtoSeanandBecky,butnotmuchmore.Anyexcesswasreinvestedinbusinessitems,likenewcomputersandprograms.Then,somemonthsago,Marlowmade,whathethinkswillbeamajortechnologicalbreakthrough.WhilstcompletingaprojectforoneofCVL'sregularclients,hediscoveredanewtypeofblockchainthat,inhisview,couldhavesignificantapplicationsinthelucrativedefenceindustry.MarlowasksSeanandBeckywhethertheywouldbewillingtocontributemorecapitaltodeveloptheblockchainproductfurther.Bothrefuse.SeantellsMarlowthat'itwouldbeunethicaltomakemoneyfromanindustryofwar'.Beckysaysthattherearefewguaranteesthattheresearchwouldyieldanyreturn:sheregardsthenewtechnologyastoospeculative.Marlow,therefore,approachesPolly,hisnewromanticpartner,aboutthepossibilityofinvestment.PollyiswillingtoputupthecashbutonlyiftheprofitsaresplittwowaysbetweenherandMarlow.MarlowisveryhappyaboutPolly'swillingnesstosupporttheproject,inpart,becausehelovesherandbelievesthattheinvestmentwillbeanexcellentuseofhersavings.However,heisalsoangryatSeanandBeckyandquitewillingtocausealittlepaintothemthroughCVL.MarlowseeksyouradviceastowhetherhecanresignfromCVLandincorporateanewcompanythroughwhichtoconducttheblockchainbusinesswithPollyandhimselfasthesoleshareholdersanddirectors.WhatisyouradvicetoMarlow?Howwouldyouranswerchange,ifatall,wereCVL'sconstitutiontocontainaclauseidenticaltos194CorporationsAct2001(Cth)?
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