Ten years ago Tom established a business on his own making bird feeders and possum boxes out of old wooden fence palings and then selling them online.His business became very successful, so he decided to convert his business structure to a company with himself as the sole director and sole member.This worked very well for Tom and his company became so successful that his products began to be stocked in major retailers across Australia and several magazines ran stories recommending Tom's products.

Two years ago Tom concluded that his business and company were too much to run on his own so he decided that he wanted to appoint another three directors.His plan was that if they also agreed to provide funds to the company, he would also allow them to become shareholders as well.After much thought, Tom decided to appoint three of his family members, Mary, Lottie and Fred as directors and shareholders.Mary and Lottie were his sisters and Fred was Lottie's husband.

At the same time, the company adopted a constitution to govern the internal running of the company.Under that constitution, Tom was stated to be the company's managing director, Mary was an executive director. and Lottie and Fred were the non-executive directors.Fred also holds a part-time position as the company's webmaster. maintaining the company's website.Fred also had a separate written agreement with Tom to appoint him to his three positions.

Unfortunately the four of them began to have disagreements to the extent that the management of the company began to be very oppressive and dysfunctional.Tom realized that things could not continue as they were because there were so many disagreements which made operating the company very difficult.

(c)Tom decides that he will remove Lottie and Fred from the board of directors and as the company's website and sales positions. and that he will continue to operate it with Mary.He tells Lottie and Fred that he is removing them from all of their roles.Lottie says that she is happy to leave and will not contest her removal, but Fred is not happy.

Can Fred retain his positions as a director and as the company's webmaster?Explain using the law to support your answer.