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Julie has been a shareholder in Indahouse Pty Ltd for some years and is upset to receive a letter from the company instructing her to

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Julie has been a shareholder in Indahouse Pty Ltd for some years and is upset to receive a letter from the company instructing her to transfer all of her 200 shares to Bob Marley. Julie makes inquiries and discovers that Bob Marley is a close friend of the Indahouse chairperson Al Gee. She also learns that the company's constitution contains a rule that provides "the chairperson of the company may, as they see fit, order any member to transfer their shares to any person at a fair market price". (@) Julie does not wish to sell her shares. Is she bound to observe the order she has received? Jimmy, another shareholder, discovers that as the company requires more funds the directors plan to issue a parcel of shares to a single investor without the members being able to participate. (b) Are the directors correct in issuing the shares, as they plan? [Note: there are insufficient facts to enable you to reach a single conclusion here. You are not told what, if anything, the company's constitution states about share transfers. Provide the alternative answers. ]

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