Shylo Tusk has just bought a majority of the shares in Elektriko Ltd - an ASX-listed public company involved in manufacturing e-scooters. He is now a shareholder with 15 million ordinary shares. Shylo wants to takeover the Board and become the Managing Director and Chief Executive Officer (CEO) in the company. He wants to sack all the current directors and most of the senior management because he thinks that they are "lazy".

The current directors do not want any of this to happen. They quickly convene a meeting of the board and announce they will issue 200 million ordinary shares in the hope that this will reduce Shylo Tusk to a minority shareholder.

Required

Advise Shylo Tusk how he might challenge this decision of the Board. Shylo also wants advice on how he could force an AGM to be held so that he can remove the current Board members.

Make sure you refer to law we have studied in BUS200 and use I.R.A.C. structure for your answer.

Answer rating: 100% (QA)

Issue Shylo Tusk wants to challenge the decision of the Board of Elektriko Ltd to issue 200 million ordinary shares in order to reduce him to a minori... View the full answer