Please do it as an IRAC style and all law is comply with the Australian corporation act 2001.

1. The Hilton family owned the Ritz Hotel. Mr Hilton was the managing director. Control over the voting in the company was managed by three classes of shares.

These share classes were:

Class A - Mr Hilton held these shares and had unrestricted voting rights;

Class B - Mrs Hilton held these shares and could only vote after Mr Hilton died; and

Class C - the Hilton children held these shares but had no voting rights at all. They still had profit sharing rights.

When Mr and Mrs Hilton divorced, Mr Hilton issued Class B shares to his two sons. This was to ensure that his sons maintained control over the company instead of his daughters who had sided with Mrs Hilton during the divorce.

The daughters challenged the share issue and seek your advice regarding their rights and any remedies that might be available to them.

In particular the daughters seek your advice on whetherMr Hilton has breached any of his duties as a director and on what basis they might be able to dispute the issue of shares?