Question
Matthew is the majority shareholder in a company he formed, Downs Properties Pty Ltd [DPPL]. At a meeting of the members of DPPL, Matthew used
Matthew is the majority shareholder in a company he formed, Downs Properties Pty Ltd [DPPL]. At a meeting of the members of DPPL, Matthew used his voting power to approve the sale of one of DPPL's major assets to a company controlled by one of his sons at less than market value. In the same way, it was also declared that DPPL had no interest in the contract taken up by his son. Again, with Matthew's voting power, the meeting ratified any breach of his directors' duties involved in this contract.
Fiona holds some shares in DPPL and is concerned about this transaction. To what extent can her concerns be resolved?
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