Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(a) Explain to Sonia the proper plaintiff rule and the internal management rule. Corporations Act 2001 (Cth), including the procedures she may need to follow

(a)  Explain to Sonia the proper plaintiff rule and the internal management rule. Corporations Act 2001 (Cth), including the procedures she may need to follow to obtain those remedies.

(b)  Sonia seeks your advice on whether there are any remedies available to her under the Sonia, Chris and Debbie are the only directors and shareholders of King Pty Ltd, which owns and operates the King's tavern. Sonia is the only non-executive director of the company. The company has 9000 ordinary shares that are fully paid up. Each shareholder holds 3000 shares. Chris and Debbie are married to each other and are also part owners of Duke Financial Brokers.

King Pty Ltd has been very successful but has not paid a dividend for the last 5 years. Profits have instead been invested in financial products. Sonia is 60 years old and her husband is ill. She requests Chris and Debbie for the company to commence paying a dividend, but instead Chris and Debbie successfully pass a resolution at a members' meeting to remove Sonia as a director. Sonia wishes to sell her shares, but, Chris and Debbie refuses to buy them. On further investigation Sonia discovers that King Pty Ltd has been inappropriately paying large "management fees" to Duke Financial brokers without any justification of work done.

Step by Step Solution

3.48 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

a plaintProperiff rule is a key rule in the corporate or business law which first came through after the precedent was set by Foss v Harbottle Proper ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
635da29298991_177522.pdf

180 KBs PDF File

Word file Icon
635da29298991_177522.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S. Warren

7th edition

1285974360, 1285183487, 9781285974361, 978-1285183480

More Books

Students also viewed these Accounting questions

Question

For a given aqueous solution, if [H+] = 1.0 109 M, what is [OH]?

Answered: 1 week ago