Advice to Bridget on Francis' Actions in Sugar Mills Pty Ltd

ADVISE TO BRIDGET

Advise to Bridget on whether Francis actions were justified in
relation to:
i). Voting her out of the board and replacing her with the
company solicitor.
ii). Entering a very profitable agreement with an associate to
sell the company’s waste as garden post all alone.
iii). Excluding the company from resulting profits with the
business in the partnership.

Question 1
Was the voting out from the board a justified move?
Majority shareholders have a dominant position with respect
to making decisions on who seat in a company board
(Jackson, 2017).
Minority shareholders are also protected from any act of
prejudice or oppression from the majority shareholders.
The question here is whether Francis acted within his rights
or Bridget was oppressed by his actions.

Majority shareholders
Who are they?
A person in the company who owns and controls more than
50% of the company’s outstanding shares.
In the foregoing, Francis qualifies as a majority shareholder.
He owns 10,000 shares of the possible 13,000 (which is
10,000+Bridget’s 2,500+ Mary’s 500). This is almost 77% of
the outstanding shares in Sugar Mills Pty.