Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem: Sticky Web Pty Ltd owns and renE out the apartments in an aparbnent block. The company had been started by Mr Spider and Ms
Problem: Sticky Web Pty Ltd owns and renE out the apartments in an aparbnent block. The company had been started by Mr Spider and Ms Fly when they got married. Mr Spider and Ms Fly each owned one share and each was a director. On the birth of their first child, Burr, Ms Fly and Mr Spider changed the constitution of the company so that each share had the right to occupy an apartment. Mr Spider transferred his share to Buzz. A new share was issued to another child, Tarantella, on her birth. Many years have passed and Buzz and 'I'arantella have grown up and moved into their apamnents. Mr Spider has died. The apartment bloclr has become decrepit. Buzz and 'I'arantella want to redevelop the building. At a general meeting Buzz and Tarantella vote themselves in as directors, denying his Fly, their mother, a place on the board. Acting as the board of directors, they then organize the renovation and redevelopment of all the apartments in the block. Ms Fly's furniture is taken out of her apartment and put into storage. The locks are changed. No more dividends are paid as, according to Buzz and Tarantella, the company has no income during the redevelopment, although it still has large amounts of retained prots. Ms Fly is forced to nd alternative accommodation but she does not like it and thinl-ts it is beyond her capacity to afford. Consider each of the following set of events: (a) his Fly offers to sell her share to Burr and Tarantella so she can herself buy something much better, but they refuse to buy it saying they have no money. They also refuse to allow her to transfer the share to anyone else, saying they need to retain the company as familyowned. Now
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started