Question 2 Zapati & Sons Pty Ltd is a family company carrying on the building business commenced in 1959 by Mr Abe Zapati. The original shareholders were Abe (25%) and his three brothers Bert (25%), Charles (25%) and Dave (25%). All four brothers were actively involved in the building business. Abe and Charles are the two directors and they effectively run the company. In 1990 Dave died and his shares were inherited by his son Percy, a geologist. Abe and Charles run the business conservatively and tend to plough back' profits into the business, so that dividend payments are lower than they could be. Percy is presently unemployed and relies on his dividend payments to live. At a general meeting he tried to change the dividend policies of the company but was outvoted by the others. He would now like to sell his shares in the company (worth about $100,000) but there is a clause in the memorandum prohibiting shares being sold outside the Zapati family. None of the other Zapatis wish to buy Percy's shares. Advise Percy