Question 2 Fabulous Sparkles Ltd ("FS") is a company which owns a chain of jewellery shops around Australia. Ed owns 46% of the share capital of FS. The remaining 54% is owned equally by Nikki, Whitney and Gaga, who are the company's directors and managers. Nikki, Whitney and Gaga are angry that Ed gets such a large proportion of the company's dividends while they are doing all the work. At a board meeting, they decide unanimously to issue a new class of ordinary shares to themselves. These shares will give them a preferential right to a dividend if one is declared. The share issue takes place. Advise Ed whether he can take any action against the directors in relation to the share issue. Do NOT discuss directors' duties or related-party transactions. [20 marks] Question 2 Fabulous Sparkles Ltd ("FS") is a company which owns a chain of jewellery shops around Australia. Ed owns 46% of the share capital of FS. The remaining 54% is owned equally by Nikki, Whitney and Gaga, who are the company's directors and managers. Nikki, Whitney and Gaga are angry that Ed gets such a large proportion of the company's dividends while they are doing all the work. At a board meeting, they decide unanimously to issue a new class of ordinary shares to themselves. These shares will give them a preferential right to a dividend if one is declared. The share issue takes place. Advise Ed whether he can take any action against the directors in relation to the share issue. Do NOT discuss directors' duties or related-party transactions. [20 marks]