THIS IS A PROBLEM QUESTION - PLEASE USE IRAC FORMAT

Jecyle is Managing Director and CEO of Jeycle & John Ltd, ( J&J Ltd ) a public company that provides fast food.

J&J Ltdis facing fierce competition from a competitor called EatAll Ltd.

Jecyle decides to hold a board meeting to pass a motion that capital be raised by issuing 200,000 new shares in the company.

She anticipates this will raise $200,000 which can be spent on upgrading the software and to launch an advertising campaign to make the public more aware of their services.

Jezabel is one of the other Directors of J&J Ltd but is opposed to this strategy and voted against it at the Board Meeting. Jezabel claims this capital raising is unnecessary and not for a proper purpose.. Jezabel is the only Director to oppose the motion.

Jecyle believes that Jezabel is a "spy" for EatAll Ltd and is not acting in the best interests of J&J Ltd. Jezebel used to work for EatAll Ltd. A photograph has appeared on facebook showing Jezebel was recently attending a party at EatAll Ltd

Required:

1. Advise whether issuing the shares would be lawful and what can be done to remove Jezebel if she is a spy.