Accounting

Content Key facts.2 Parties.2 Issues..2 Rules...2 The earthy law rules.....3 Corporations Act 2001.....3 last.....4 Conclusion..4 Reference reheel.5 Textbook...5 Table of expect..5 Key Facts: Tazie Fazie Homes Ltd is considering restructuring its operations, and perhaps diversifying into industrial cleaning. This club has a on the whole owned subordinate Clean Bean Pty Ltd which has do a profit of $300,000 this fiscal course. The keep come with will sham a profit of $750,000 this year. The 60 sh arholders have not been paid a dividend last two years. The managing theater director contends that the profits this year argon required to progress up working capital. Parties: Tazie Fazie Homes Ltd The managing director Brent Issues: * Is thither any sub judice bodily process the shareholders can do to legions the director to allowance a dividend?

* If the director does decide to cause all profits come to the fore as dividend, could the shareholders do anything to dress up or pr pointt the remuneration of these dividends? * Is the director required to assume a dividend and if so what occur should be paid and thence? Rules: Generally, there is no bylaw that requires the directors to fix a dividend, subject to what the lodges constitution sets. The companys constitution whitethorn have quite absolve rules on dividend payment; the directors mustiness follow this, as incision 140 provides that the constitution is a statutory contract. There are some(a) cases that give counselor: 1. Burland v Earle [1902] shareholders do not have the power to arrogate in a dividend from directors even if the company is profitable. 2. Sanford v Sanford messenger assist Pty Ltd [1986] does provide some basis for shareholders to take action against a profitable company if the...If you want to get a skillful essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.