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Question 1 The constitution of FWPL allows for the directors to pay a dividend to holders of A Class shares at their discretion. Over many years, the company had paid a dividend which, although not...

Question 1
The constitution of FWPL allows for the directors to pay a dividend to holders of A Class shares at their discretion. Over many years, the company had paid a dividend which, although not sizable, was sufficient for the shareholders who chose to do so, to live on.
However, Mario and his siblings are angry about the discontent that Jason has been stirring up among the Galli grandchildren, some of whom they see as lazy and undeserving.
So, the board of GML resolves not to pay a dividend to the A Class shareholders this year, and instead, to retain earnings to fund the development of the organic vineyard at Robinvale.
What action, if any, can the Galli grandchildren take in respect of non-payment of the dividend?
This question is covered in week 8 topics, see chpts XXXXXXXXXXYour answer should cover; Who can apply. What is oppression. Remedies where there is oppression and apply your findings to the to the facts. Approx. Word count 550
Question 2
At FWPL, Mario and Nick Galli are concerned about the level of dissatisfaction among the A Class shareholders. They would like FWPL to be able to buy out the A Class shareholders at a value to be fixed by an independent expert. They seek your advice on doing a share buy-back under the Corporations Act.
What are the benefits of doing a share buy-back? What is required?
This question is covered in week 10 topics, see chpts XXXXXXXXXXYour answer should cover ; Rules of selective buy-back and what selective buy-back involves. You should also apply your findings to the facts. Approx. word count 250



Oct 07, 2019
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