Question
James is a director of Four Score Pty Ltd, a company that offers vocational education courses to people living in regional areas. He worries that
James is a director of Four Score Pty Ltd, a company that offers vocational education courses to people living in regional areas.
He worries that company shareholders are unhappy with his performance as a director. He issues 50 company shares to his sister Petra so that she can vote against any proposal to remove him as a director.
Ajmal, a shareholder of Four Score Pty Ltd, thinks the share issue may be improper.
Advise Ajmal whether James has breached his duty to use his powers for a proper purpose.
Use IRAC method to structure your advice: identify the issue, cite the relevant law, explain the application of the law to the issue, and draw a conclusion.
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