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Question2 The shareholders of ABC Ltd, a company formed to operate a large hotel, are concerned that although the company has been making a profit

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Question2 The shareholders of ABC Ltd, a company formed to operate a large hotel, are concerned that although the company has been making a profit of 15% on shareholders funds, they have not yet been paid a dividend. The directors contend that surplus assets are required to build up working capital. Can the shareholders take legal action to force the directors to pay a dividend? If the company's assets exceed its liabilities and the directors intended paying all the surplus out as dividends, could the shareholders do anything to reduce or prevent the payment of these dividends

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