Question 1:

(a) Huong and Byron are shareholders in HBP Ltd (HBP), a large, listed company. Between them they hold 400 ordinary shares. They are unhappy with HBP's environmental record. At the annual general meeting, Byron asks the board two questions on HBP's mining operations. He considers the answers given to be totally inadequate. He wants to ask further questions about HBP's offshore drilling operations. Is the Chair obliged to allow Byron time to ask these questions?

(b) Toby is also a shareholder in HBP Ltd. Two weeks before the AGM he submitted a list of detailed written questions to the auditor about the content of the auditor's report to be considered at the AGM. At the AGM the auditor was represented by a very junior employee who provided brief oral answers to the written questions submitted by Toby. The Chair of the meeting then refused to allow Toby to ask any further questions. Have either the Chair of the meeting or the auditor breached the Corporations Act?

(c) After the AGM, Huong, Byron, Toby and 96 other small shareholders in HBP who have similar views decide to campaign to force HBP to alter its environmental policy. Huong and Byron each transfer one share in HBP to their friends Tran and Shelley so that the group now numbers more than 100. They then request the directors of HBP to call an extraordinary general meeting to consider a resolution proposing major changes to HBP's environmental policies. Advise HBP Ltd.