Question
USYD CLAW6002 Corporate Law Homework Question Alex is a member of Acme Ltd, a public company listed on the ASX. Acme Ltds constitution provides that
USYD CLAW6002 Corporate Law Homework Question
Alex is a member of Acme Ltd, a public company listed on the ASX. Acme Ltds constitution provides
that each ordinary shareholder is to be given a copy of all proposed resolutions (both ordinary and
special) at an upcoming members meeting in the notice of meeting. Alex and many other
shareholders have been dissatisfied with Acme Ltds management for some time due to the
companys consistently poor performance and declining share price. Alex decides to actively
campaign against the current board of directors, by contacting all of the companys members and
asking them to direct their proxies to him at the next AGM so that he can vote out the current
chairman of the board who appointed the companys senior management team. Alex hopes that this
will send a message to the remaining board and the senior management team that they need to
improve their performance.
(a) How could Alex contact all of the members of Acme Ltd? How might Acme Ltd be able to prevent
Alex from contacting all of the companys members?
Assume that Alex was unsuccessful in his attempt to obtain sufficient proxy votes to vote out the
current chairman. However, Alexs campaign has raised greater awareness within the companys
membership about the failings of the current chairman and a large number of proxies are assigned
to the chairman to vote against a motion to increase the directors remuneration at the next AGM.
Acme Ltds chairman is also the chair of the AGM and inadvertently misplaces the proxy votes
voting against the directors remuneration increase.
(b) What possible consequences may result from the failure to properly vote the proxies?
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