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Nick Scali Limited is a furniture retailer listed on the Australian Securities Exchange (ASX). The company received Job Keeper payments from the Australian Government as

Nick Scali Limited is a furniture retailer listed on the Australian Securities Exchange (ASX). The company received Job Keeper payments from the Australian Government as part of the COVID wage subsidies packages. It is reported in the media this totaled close to $8,000,000. Subsequently after announcing record profits, in the six months to the end of December 2020, including an increase of sales of 24.4% to $171.1 million and a surge in underlying profits of 99.5% to $40.5 million, Nick Scali received significant adverse media attention due to its refusal to repay Job Keeper. Further scrutiny followed after the company paid its shareholders an increase of dividends of 60% and also rewarded its executives with bonuses. Required (a) Identify the relevant stakeholders in this case study (1 mark) (b) Explain why consideration must be given to stakeholders other than shareholders (2 marks) (c) What are the possible consequences for Nick Scali Limited if they do not balance the interests of other stakeholders? (2 marks) Total 5 marks

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