Casino Pty Ltd is an Australian manufacturing company. Its board of directors recently met to approve...
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Casino Pty Ltd is an Australian manufacturing company. Its board of directors recently met to approve an additional borrowing of $150m from the bank to expand its manufacturing facilities. There are four (4) directors in the company. Ethan is a shareholder and owns 20% of the shares in the company. He is unhappy with the board's decision to borrow an additional $150m because he is concerned that the company may become insolvent if it were to do so. Ethan is not a director of the company and has no say in the board's decision. The company has been trading profitably however its profitability has suffered slightly in recent times due to increases in interest rates. There is no other evidence to suggest that the company is currently insolvent. Ethan has decided to call a shareholders' meeting to overturn the board decision. Required: Advise Ethan how he may call a shareholders' meeting and whether he has the power to call the meeting as proposed. Advise Ethan of any other options that he may have to address his concerns in relation to the board's actions. [25 marks] Casino Pty Ltd is an Australian manufacturing company. Its board of directors recently met to approve an additional borrowing of $150m from the bank to expand its manufacturing facilities. There are four (4) directors in the company. Ethan is a shareholder and owns 20% of the shares in the company. He is unhappy with the board's decision to borrow an additional $150m because he is concerned that the company may become insolvent if it were to do so. Ethan is not a director of the company and has no say in the board's decision. The company has been trading profitably however its profitability has suffered slightly in recent times due to increases in interest rates. There is no other evidence to suggest that the company is currently insolvent. Ethan has decided to call a shareholders' meeting to overturn the board decision. Required: Advise Ethan how he may call a shareholders' meeting and whether he has the power to call the meeting as proposed. Advise Ethan of any other options that he may have to address his concerns in relation to the board's actions. [25 marks]
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Calling a Shareholders Meeting and Addressing Ethans Concerns Calling a Shareholders Meeting Ethans ability to call a shareholders meeting depends on ... View the full answer
Related Book For
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
Posted Date:
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