Question
Perc is the chair of Dame Roma Wines Pty Ltd and he holds 3,000 shares. Bec is a winemaker and she joined the company in
Perc is the chair of Dame Roma Wines Pty Ltd and he holds 3,000 shares. Bec is a winemaker and she joined the company in 2006. She was issued shares in each of her first 4 years with the company and she now holds 1,000 shares. She is a director. Perc's son Jacob was issued 500 shares on his 18 birthday in 2010 and was simultaneously appointed a director. This made the total number of issued shares 4500. Jacob studied Oenology at Roseworthy Campus during 2012-2014. In October 2014 Bec had annual leave and when she returned to work there began a series of disagreements with Perc. At a meeting in December attended by all three directors Perc demanded that the Bec's salary be reduced, her work car be returned and sold, the company's expenses be reduced substantially and that Bec's responsibilities and duties be drastically altered and that she undertake the role of winery supervisor and no longer hold the title 'winemaker'. Perc made the argument that these changes were necessary because of the company's financial position. With the support of Jacob all these matters were implemented. Bec questioned the reasons provided by Perc after speaking the company's accountant who told her that the company's financial position was very strong. Perc then said that Bec did not understand the company's financial policy and that she was not needed on the board and she should concern herself with supervising the winery staff. Perc offered to buy Bec shares for what she had paid for them or the price as calculated by the company's accountant. In January 2015 the company held an Extraordinary General Meeting and re-elected Perc and Jacob but did not elect Bec. At the end of the meeting Perc asked Bec for her resignation as an employee of the company. Perc also offered to purchase Bec shares for $1 more than the price assessed by the company's accountant. Bec refused this offer. Jacob has been winemaker for the company since the start of the year. Advise Bec
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