Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Holiday Ltd provides holiday packages for tourists in Australia. The company does not have a constitution. Due to a worldwide pandemic, international tourist numbers are

Holiday Ltd provides holiday packages for tourists in Australia. The company does not have a constitution. Due to a worldwide pandemic, international tourist numbers are falling and the company is not making a profit. The board of directors decide that the company will close down its holiday business and manufacture LCD televisions instead. To fund the new business venture the directors decide not to pay a dividend to the members.

The members are unhappy about the new business direction and the dividend policy. They are considering passing resolutions at a general meeting reversing both directors' decisions. The directors tell the members that they will not call a members' meeting and will not change their decisions.

REQUIRED:

Advise the directors whether they need to observe any members' resolutions reversing the two directors' decisions (4 marks).

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

Tort Law And Alternatives Cases And Materials

Authors: Marc Franklin, Robert Rabin, Michael Green, Mark Geistfeld, Nora Engstrom

11th Edition

164708489X, 978-1647084899

More Books

Students also viewed these Law questions

Question

9. Persist. Wear the opposition down. Stay in the game.

Answered: 1 week ago

Question

Are there professional development opportunities?

Answered: 1 week ago