Question
Mark, Brian and Chris are the only members of the Comfort Pty Ltd, which owns and operates the Comfort's tavern. The company has 9000 ordinary
Mark, Brian and Chris are the only members of the Comfort Pty Ltd, which owns and operates the Comfort's tavern. The company has 9000 ordinary shares that are fully paid up, and each shareholder holds 3000 shares. Mark, Brian, who are brothers are appointed to the board of directors of Comfort. Comfort Pty Ltd has been very successful but has not paid a dividend for the last 5 years. Profits have instead been used to give an increased salary to the directors Mark and Brian. Recently, a large catering business to service a large mining company for a year was negotiated by Mark, Brian. However, things between the members has not been quite good as Chris has expressed her dissatisfaction in relation to the non-distribution of dividends. As a result, Mark and Brian, decided that they will transfer the new contract to New Pty Ltd. They further called a members meeting approving the diversion of the business toNew Pty Ltd. On further investigation, Chris discovers that Mark and Brian are the only directors and members of New Pty Ltd.
Charlie seeks your advice on whether there are any remedies available to her under the Corporations Act 2001 (Cth), including the procedures she may need to follow to obtain those remedies.
Fully justify your answer, citing the relevant provisions of the Corporations Act 2001 (Cth) and case laws in authority
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started