Beverley Johnson holds 5% of the shares in JPR Pty Ltd. The largest shareholder is Eugene Mann who holds 80% of the shares. Eugene Mann and Carmel Wren are the only directors, and the company does not have a constitution.

Beverley’s shares were issued with a right to a dividend which is double that of other shares and 4 votes per share. Eugene Mann wants to hold a general meeting of members to pass a resolution that will reduce the dividend and voting rights of Beverley’s shares down to the same level as the other shares.

Required

Using the Corporation Act 2001 (Cth) and case law if any, advice Beverley Johnson if JPR Pty Ltd can amend Beverley’s dividend and voting rights.

Answer rating: 100% (QA)

The Corporations Act 2001 is an Act passed by the Australia which provides the detailed laws dealing with business entities in Australia at federal and interstate level It mainly provides regulations ... View the full answer