Ella Steel is a minority shareholder in Iron Ventures Ltd (Iron). Ella is concerned that the directors

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Question:

Ella Steel is a minority shareholder in Iron Ventures Ltd (Iron). Ella is concerned that the directors of Iron, who are also the majority shareholders, are enriching themselves at the expense of the company and other shareholders. She argues that their pay is significantly above market rates, and they have agreed to a large interest free loan to a company of which they are directors, but in which Iron is not a shareholder.

(a) Explain whether a court is likely to permit Ella to sue the directors in the name and on behalf of Iron. Please refer to New Zealand law。