Question
United Agricultural Holdings Ltd (UAH) is a company which owns a number of cattle stations throughout New South Wales. UAH has a board that consists
United Agricultural Holdings Ltd (UAH) is a company which owns a number of cattle stations throughout New South Wales. UAH has a board that consists of four directors, Charles, Camilla, Andrew and Edward. It currently has $ 100 million in capital, on deposit with NSW Bank. The board has decided that given its healthy cash position, it wants to expand the company's operations.
The board of UAH decides that, to make its operations more profitable, it should sell some of its lower-producing farms, and gives Edward the authority to identify which properties should be sold and to sign contracts of sale, without reference back to the board. Edward identifies five farms, and sells four of them to other agricultural firms. The fifth farm he sells to Charles' wife, Diana. The farm is sold at market value.
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