Janus Pty Ltd recently purchased a large farm to run its agricultural business. The purchase price of the farm was $100 million, which was funded by a mortgage in the amount of $95 million and cash that Janus had raised from its shareholders. The agricultural business is wildly successful and Janus generates tremendous free cash flow. Unfortunately, due to a general slump in the price of farms in Australia, Janus' auditor says Janus needs to revalue its farm down to $85 million, as this is the fair carrying value. Janus revalues the farm and its balance sheet appears as follows.

JANUS PTY LTD Balance Sheet 1 February 2019

Assets

$ Liabilities $

Cash

5 000 000 Loan payable 95 000 000

Farm

85 000 000 Other unsecured creditors 50 000

Equipment

10 000 Shareholders' equity (4 540 000)

Receivables

500 000

Total assets

90 510 000 Total liabilities and equity 90 510 000

Janus' shareholders are annoyed that the company has not paid a dividend even though it has a successful business and $5 million in cash on its balance sheet.

(a) The shareholders want to force the directors to pay a dividend. Advise the shareholders.

(b) Would it make any difference if the constitution said that the shareholders can approve a dividend

by passing an ordinary resolution?