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Question 2 Helen and Vedanta are directors of 'Exotic Lotus Limited', a wellbeing and herbal medicines business. The shareholders of the company are Helen (holding
Question 2 Helen and Vedanta are directors of 'Exotic Lotus Limited', a wellbeing and herbal medicines business. The shareholders of the company are Helen (holding 70%), Vedanta (20%) and Fatima (10%). Helen and Vedanta have been very keen on developing relationships with the various chemists and pharmacies in their locality. Unfortunately, they have been rather slow in calling in debts owed for goods supplied months ago. They have taken the unusual decision of writing off certain debts owed to the company, on the basis that they would not wish to sour future business relationships with those clients. Fatima has been receiving lower and lower dividend payments recently and is furious now that she has learned about the directors' decision not to chase certain outstanding debts. Advise Fatima what action, she can take as an aggrieved minority shareholder? Total= 40 marks
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