Question
SmartHouse Pty Ltd is a sustainable housing construction company that was established by Louise and Manuel, who were a married couple, in the 1970s. Louise
SmartHouse Pty Ltd is a sustainable housing construction company that was established by Louise and Manuel, who were a married couple, in the 1970s. Louise and Manuel had four children named Lola, Jose, Dario and Alba. Before Louise and Manuel passed away in the late 1990s they transferred their shares in the company equally to their four children and also made Lola, Jose and Dario directors of the company. Alba was too young at the time to be a 2 director. Louise and Manuel had instructed their children that the company should always be managed in a financially conservative way, it should only issue small dividends and reinvest its profits to ensure the continued viability of the business. For many years the directors followed this tradition. Then, in around 2018, sustainable housing suddenly became much more popular and SmartHouse Pty Ltd began to make very large profits. The three directors also began to make more risky business decisions which upset their younger sister Alba who wanted the directors to honour their parents' wishes. In response to Alba's objections, in 2021, rather than issuing any dividends, Lola, Jose and Dario decided instead to pay themselves very large directors' salaries from the company's profits. Advise Alba whether she can seek a remedy in her own name. Explain.
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