Corporations Law Assignment - Doc
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ACC204 Impairment accounting assignment (ACC204)
Added on 2020-02-24
Corporations Law Assignment - Doc
ACC204 Impairment accounting assignment (ACC204)
Added on 2020-02-24
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Corporations law2017ContentsAnswer to Question No. 1.....................................................................................................................2Answer to Question No. 2.....................................................................................................................3Answer to Question No. 3.....................................................................................................................4Bibliography..........................................................................................................................................5Answer to Question No. 1ISSUEThe board of GML has been stating the fact that they have distributed the dividend to it’s a class shareholder of the company. The procedure used to take place with the consent of all the directors of the company as the section 34, will not allow the management of the company to take action according to one of the directors. The directors of the company are entitled to make sure that all the decisions taken by the government should be effective enough and should be according to a mutual agreement between all the directors of the management.[ CITATION Gov141 \l 16393 ]Since the time they have decided that the dividend would not be paid to any shareholders of the company, as the money would be retained for future expansions, the Galli grandchildren did not consent with the same. For this reason, the grandchildren want to go ahead with the court proceedings as in they are not getting their usual dividends from the company. Mario and his siblings are totally against the same as they want to keep those funds to make sure that they expand their respective business in the development of organic vineyard at Robinvale. [ CITATION Con13 \l 16393 ]RULEIn the current scenario, Galli grandchildren cannot really take any action against the remaining directors of the company. The reason, being the fact that, according to the section 2 | P a g e
Corporations law201734 of the companies act, the management or the directors of the company can only take any decision for or against the company, if and only if there is a majority for the same. In the presence of this section, the company's management restricts the rights of the directors, as it becomes an important factor in the case of large scale companies.The case reference: Sharp and others v Blank and others [2015] EWHC 3220.APPLICATIONIn the pretext of the current scenario, it should be noted that the Galli grandchildren cannot really take any action against the company as the payment of dividend greatly depends upon the other directors in the management. The one thing, which is to be noticed in the current scenario, is the fact that the companies act does not allow any of the shareholders or the directors to decide whether the dividend is to be paid by the company or not. So therefore, there would not be any sort of oppression from any of the parties involved. Coming to the situation where the company would be leading the discussions regarding the fact as to how the dividend is to be distributed or actually how the retained earnings are to be used, it is solely in the hands of majority of the directors in the board meetings. If there is no clear majority with the same, the decision would not be taken in anybody’s favour and a resolution would be passed in order to determine as to how the work would be processed further. CONCLUSIONTherefore, it can be said that in order to pass a decision or anything related to the management, the company’s act have laid down sections, that would be aiding the company to decide regarding its whole process. Again, coming to the conclusion, Section 34 plays a very critical role in coming up with the solution of having majority in the board room with allthe decisions, which are to be taken by them. [ CITATION Del14 \l 16393 ]3 | P a g e
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