It is from the subject name - Companies and Securities law

[26-450] Problem set 8

1. The constitution of SAFPL allows for the directors to pay a dividend to holders of AClass shares at their discretion. Over many years the company had paid a dividend which, although not sizeable, was sufficient for the shareholders who chose to do so to live on it. However, David and his siblings are angry about the discontent that Jason has been stirring up among the Henry grandchildren, some of whom they see as lazy and undeserving. So the board of SAFPL resolves not to pay a dividend to the AClass shareholders this year and, instead, to retain earnings to fund the development of the organic farm in the Riverina. What action, if any, can the Henry grandchildren take in respect of non-payment of the dividend?