Question
Mark, JUke and Chris are the only members of the Comfort Pty Ltd, which owns and operates the Comforts tavern. The company has 9000 ordinary
Mark, JUke and Chris are the only members of the Comfort Pty Ltd, which owns and operates the Comforts tavern. The company has 9000 ordinary shares that are fully paid up, and each shareholder holds 3000 shares. Mark and Juke, 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 Juke. Recently, a large catering business to service a large mining company in Perth for a year was negotiated by Mark and Juke. 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 Juke, decided that they will transfer the new contract to Luxury Pty Ltd. They further called a members meeting approving the diversion of the business to Luxury Pty Ltd. On further investigation, Chris discovers that Mark and Juke are the only directors and members of Luxury Pty Ltd. Chris 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.
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