Question
IT'S REAL Pty Ltd (IRPL) develops and produces several reality TV shows in Australia. Its most successful show to date is Married on Sight, which
IT'S REAL Pty Ltd (IRPL) develops and produces several reality TV shows in Australia. Its most successful show to date is "Married on Sight", which features a group of strangers who are paired together to participate in social experiments designed to challenge and test their relationships with one another.
IRPL has 5 directors (below) who are also the company's shareholders. Name Shareholding John - managing director 20% Mel and Alessandra (John's friends) 5% each Harrison and Dan (husbands of Mel and Alessandra) 5% each
The remaining 60% of the shares in IRPL are held by Nine Now Pty Ltd (NNPL). Sandra is the sole director and shareholder of NNPL and is John's mother. The shares held by John, Mel and Alessandra are fully paid. The shares held by Harrison and Dan are partly paid.
Despite the success of Married on Sight, John is growing bored of the concept and the negative publicity associated with the show. He wants IRPL to cease production of the show and instead, produce a show called "The Strong 100" which features 100 contestants competing against each other in a series of endurance, strength, and agility contests to see who is the strongest. John has discussed his idea with the other directors, including his mother, over several social lunches. Mel and Harrison think it is a terrific idea as they too are becoming tired of dealing with negative press. Alessandra and Dan are opposed to John's idea and want to continue to enjoy the success and rewards of Married on Sight. John convenes a meeting of the board of IRPL and puts forward a formal resolution that IRPL cease production of Married on Sight in favour of The Strong 100. John tells Mel and Harrison about the meeting but does not tell Alessandra and Dan. John, Mel and Harrison attend the meeting in private and the board resolution is passed by them. You can assume that IRPL is governed by the replaceable rules in the Corporations Act 2001 and has one class of shares - ordinary shares.
1. Alessandra and Dan find out that the board meeting took place without them and they are furious. They are unhappy with the resolution passed by John, Mel and Harrison. Advise Alessandra and Dan whether they have any grounds to have the board resolution set aside.Using IRAC and according to the corporations act 2001.Mention the sections related from the legislation to support the answer
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