Question
please help me In accordance to Australian Law The Board of Dental Assist Pty. Ltd. has five directors: three are executive and two non- executive.
please help me In accordance to Australian Law
The Board of Dental Assist Pty. Ltd. has five directors: three are executive and two non-
executive. Dental Assist provides an employment agency for dental nurses. The Board
recently approved the purchase of a complex computer system from Singsong
Computers Pty. Ltd., on the recommendation of Sharif Omar, one of the non-executive
directors.
A minority shareholder of Dental Assist, Pam Yates, is aware that Sharif and the other
non-executive director, Jing Jao, are the shareholders and directors of Singsong
Computers. Pam believes that an equivalent quality computer system could have been
purchased for a fifth of the cost.
Pam Yates has another concern. She believes that one of the executive directors, John
Stone, is approaching the dental nurses who have registered with Dental Assist to offer
them training courses with 'ProTrain', a partnership he conducts with his spouse. Pam
Yates considers that Dental Assist should be diversifying so that it provides this training.
Required:
a) Advise whether any of the directors breached sections 181-4 of the Corporations
Act 2001. Consider the position of each director. (15 marks) and
b) Advise Pam Yates, whether she has any rights as a shareholder to take legal
action and if so, under which section or sections of the Corporations Act 2001 (5
marks)
Give reasons and refer to sections of the Corporations Act
2001 (Cth) and cases where relevant.
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