Alex is a member of Acme Ltd, a public company listed on the ASX. Acme Ltd's...

 

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Alex is a member of Acme Ltd, a public company listed on the ASX. Acme Ltd's 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 Ltd's management for some time due to the company's consistently poor performance and declining share price. Alex decides to actively campaign against the current board of directors, by contacting all of the company's 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 company's 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 company's members? Assume that Alex was unsuccessful in his attempt to obtain sufficient proxy votes to vote out the current chairman. However, Alex's campaign has raised greater awareness within the company's 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 Ltd's 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? Alex is a member of Acme Ltd, a public company listed on the ASX. Acme Ltd's 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 Ltd's management for some time due to the company's consistently poor performance and declining share price. Alex decides to actively campaign against the current board of directors, by contacting all of the company's 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 company's 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 company's members? Assume that Alex was unsuccessful in his attempt to obtain sufficient proxy votes to vote out the current chairman. However, Alex's campaign has raised greater awareness within the company's 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 Ltd's 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?

Answer rating: 100% (QA)

a Contacting Acme Ltds Members Alex could contact all of the members of Acme Ltd through various means including 1 Email Alex could obtain a list of m... View the full answer