The board of AusFarm Pty. Ltd. is interested in producing a range of organic beef. They have heard that a block of land in the Riverina is for sale. The land has already been appropriately certified for organic production by the relevant authorities. However, the venture is risky, and the board has decided to incorporate a new subsidiary, to be called Organic Beef Pty. Ltd. to acquire the property. Mick McKenzie owns 10 ordinary shares and five A class shares in AusFarm Pty. Ltd. He has heard about the proposed formation of Organic Beef Pty. Ltd. and acquisition of the new farm and thinks a move into organic beef production would be a mistake.

REQUIRED:

Mick seeks your advice regarding the following questions:

a. What steps, if any, can Mick take to prevent AusFarm Pty. Ltd. going ahead with the deal?Mick told you that his shareholding in AusFarm Pty.Ltd. is 5%

b. MeatProduction Pty Ltd is a shareholder in AusFarm Pty. Ltd. Meat Production Pty Ltd wantsAusFarm Pty. Ltd.'shareholders to pass a resolution to remove the voting right of A class shares because A class shareholders have been critical about going ahead with the deal of buying the new land to produce organic beef. Can the shareholders do so? Provide your reasons