Question 2 SYF Ltd owns a chain of restaurants. The share capital of SYF is 5,000,000 ordinary shares issued at $2.00 per share. lCIIne of SYF's assets is land at Mt lGrayatt it had proposed to build a restaurant on. However, due to intense competition in the area, SYF decides to sell the land for $1,100,000 (which is market value}. Given community attitudes towards healthier eating, SYF decides to concentrate its energies on its current restaurants and has no intention to expand. The directors of SYF propose to distribute to the shareholders the $1,100,000 by way of capital reduction. Suki, an owner of 10,000 ordinary shares in SYF, objects to the proposed capital reduction because of the high rate of income tax she will pay on any distribution of money. Which of the following statements is correct? (a) SYF cannot sell the land without the consent of all ordinary shareholders under the Corporations Act; (b) Any capital reduction will materially prejudice the company's ability to pay its creditors pursuant to 52 56B of the Corporations Act; (c) Suki's tax situation is not a relevant factor in determining whether the proposed capital reduction is \"fair and reasonable\" pursuant to 5256B of the Corporations Act; {:31} The rule in Trevor v Whincorth means that SYF is prohibited from reducing its share capital; (e) Both (b) and (d) are correct