Tyrone is minority shareholder in Bed Bugs Pty Ltd, a company that manufactures and sells mattresses....
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Tyrone is minority shareholder in Bed Bugs Pty Ltd, a company that manufactures and sells mattresses. Tyrone is not a director of the company. Tyrone is concerned that the directors of the company (Sonia and Bruce) have breached the duty to act in good faith in the best interests of the company. Sonia and Bruce own 90% of the shares in the company. The matter that concerns Tyrone arose from a directors' meeting where Sonia and Bruce resolved to sell the company's manufacturing business and invest the proceeds in expanding the retail business. This decision was based on a report prepared by Arkwright Consulting. The report concluded that the manufacturing facilities were outdated and no longer fit for purpose and that an expenditure of several million dollars would be required to modernise the facilities. Required: Advise Tyrone whether there are any avenues available under the Corporations Act that will effectively address his concerns. Tyrone is minority shareholder in Bed Bugs Pty Ltd, a company that manufactures and sells mattresses. Tyrone is not a director of the company. Tyrone is concerned that the directors of the company (Sonia and Bruce) have breached the duty to act in good faith in the best interests of the company. Sonia and Bruce own 90% of the shares in the company. The matter that concerns Tyrone arose from a directors' meeting where Sonia and Bruce resolved to sell the company's manufacturing business and invest the proceeds in expanding the retail business. This decision was based on a report prepared by Arkwright Consulting. The report concluded that the manufacturing facilities were outdated and no longer fit for purpose and that an expenditure of several million dollars would be required to modernise the facilities. Required: Advise Tyrone whether there are any avenues available under the Corporations Act that will effectively address his concerns.
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Tyrone as a minority investor in Bed Bugs Pty Ltd has the correct to his issues To advise Tyrones involved that the administrators of the corporate Sonia and Bruce have broken the duty to act in good ... View the full answer
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