PART B - YOU MUST ANSWER THIS QUESTION. It is worth in total 40 marks

Serena, Naomi and Roger are the directors of World Domination Ltd, which runs a tennis academy based in Melbourne. It has many small shareholders who are also tennis players. Andy, who owns 5% of the company's share capital, has been complaining at shareholder's meetings about the way the academy is run. The three directors are unhappy about Andy's complaints and are concerned that if other shareholders agree with him, they will lose their directorships. They come up with some options to deal with the situation.

1. Take away the voting rights of Andy's shares, so that he cannot attend the company's AGM.

2. Cancel Andy's shares and return the issue price to him.

3. Issue large parcels of partly paid shares to themselves so that they own more than half the voting share capital of the company.

Advise Serena, Naomi and Roger about whether these options are available to them and if so, what is necessary to achieve them.