Theta Developments Ltd (Theta) is a property investment company. Theta has 40 shareholders, including Trudie Grey, who is a professional investor. The Green family controls the majority of Thetas shares, and appoints the companys three directors. Two directors are Green family members and the third, Ed Teal, has worked his way up through the business. At Thetas annual general meeting, Trudie criticises the boards conservative investment policy. She provides the board with details of a potentially lucrative housing development project and demands to be appointed to the board to oversee the project. Ed agrees with Trudie and proposes that the Greens appoint her as director and adopt her proposal. When the other directors disagree, Ed forms his own company to exploit the opportunity. Eds company is highly successful. Trudie is furious that the majority of Thetas board has not listened to her advice about the project, and refused to appoint her as director. She considers this to be shareholder prejudice since the value of her investment will almost certainly fall. Trudie also demands that Theta sues Ed. Lisa White, Thetas legal advisor, tells Trudie that Thetas board will not sue Ed. The directors argue that Ed has done much for Theta in the past, and speculate that they still might be able to work together in the future. Its best not to sue an ambitious person like Ed Teal, Lisa says.

(a) Advise Trudie whether a court is likely to allow her to sue Ed in the name of, and on behalf of, Theta.

(b) Advise Trudie whether a court is likely to agree with her that she is a prejudiced shareholder.

Follow Companies Act 1993 and case laws.