Simon, Claudine, Frederick and Connie decide to start up an organic meat business, with the intent to open 30 organic meat shops around Western Australia within 3 years. On advice from their accountant Serena, they incorporate a public company called The Organic Meat Company Ltd. The organic meat business is very successful and they have opened up 30 organic meat shops in 3 years.

Tanya a minority member of The Organic Meat Company Ltd has noticed that on many occasions Claudine a director of The Organic Meat Company Ltd has been giving meat products free of charge to her family members. Tanya also declares that Claudine is a very influential member of The Organic Meat Company Ltd, and she has engaged in conduct, which has significantly benefited her family at the expense of the company. Tanya would like court action to be taken against Claudine to redress this very serious abuse of position. However, the other directors of the company rarely question Claudine’s decisions or dare challenge her at the board meetings.

REQUIRED:

Using the relevant provisions of the Corporations Act 2001 (Cth) and case law, if any, advise Tanya whether there is anything she as a minority shareholder can do, despite her having limited financial resources.