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Olivia, Eva, and Isabella invent the first lightweight jet backpack, called Solo. Solo has promising sales and in order to better protect their asset,
Olivia, Eva, and Isabella invent the first lightweight jet backpack, called "Solo". Solo has promising sales and in order to better protect their asset, they decide to incorporate a company to own all of the intellectual property. Olivia, Eva, and Isabella issue 2000 shares to each of them, and they each become a director of their new company, "Solo Star Pty Ltd" (SS). The members remunerate themselves mainly through dividends. They do not bother paying themselves separate directors' fees. The company thrives and to raise more capital they decide to issue another 1000 shares to Liam, and appoint him as a director. Liam is difficult to work with because his abrupt manner of communicating upsets the other directors. The other directors ask him to resign, but he refuses. They then remove him from the board, and instead of continuing to pay dividends, they start paying themselves a salary. Liam threatens to sue the company. Olivia, Eva, and Isabella then decide to incorporate a second company, the "Lone Star Pty Ltd" (LS), and exclude Liam. They inform Liam that SS will be selling its main asset, its intellectual property rights, to LS for $50. Liam votes against the sale, but is outvoted. Advise Liam on whether he has any remedies as a shareholder of SS.
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