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The case of the non-payment of the dividend by grandchildren of Galli

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Added on  2020-03-16

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As stated in the section 232 of the act, it can be said that the court can prosecute and make orders based on Corporation Act’s section 233, in relation to the organizations operations and objectives. As stated in the previous corporation act’s section 234, a member of the organization has the right to apply for an order that is based on the corporation act’s section 233.

The case of the non-payment of the dividend by grandchildren of Galli

   Added on 2020-03-16

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Running head: LAW OF BUSINESSLaw of BusinessName of the StudentName of the UniversityAuthor Note
The case of the non-payment of the dividend by grandchildren of Galli_1
1LAW OF BUSINESSAnswer 1:IssueThe case stated here discusses whether a legal claim can be made against the non-payment of thedividend by grandchildren of Galli. RuleAccording to the Section 53 of Corporation’s Act, activities that are carried on to support thevarious operations of an organization are called affairs. It is the motive of Corporations Act 2001 (Cth) to safeguard the interests of all minority stockholders and prevent them from any oppression projected by the directorial board. As stated in the section 232 of the act, it can be said that the court can prosecute and make ordersbased on Corporation Act’s section 233, in relation to the organizations operations andobjectives. The court can do the same of it sees any omissions or changes that are not clarified,or if the organization doesn’t consider the interests of the shareholders, is oppressive, unfair andmakes decisions that may not benefit the interests of the company. It was stated by the court of law that the compensation can be taken even if the directorial boardor the management are not particularly at fault or haven’t breached any of the common laws. It isup to the objective test to decide the guilt of the party, as in the In the case of Waydev NSWRugby League[1985] HCA 68 case. In the Jermyn Street Turkish Baths Ltd[1971] 1 WLR 1042 case, it was seen that sometimesprobity’s extent can lack due to the various ways of how things might be conducted, all these areconnected to how the company conducts its operations and organizes its conduct.
The case of the non-payment of the dividend by grandchildren of Galli_2
2LAW OF BUSINESSAs stated in Section 233, the court, if deems appropriate, can carry on any orders given outthrough the corporation act’s section 232, which may also include the reduction of the sharecapital, buying and selling of stock, decisions based on my organizational operations that mayoccur, any actions that the organization might take legally, decisions on company’s winding upand etc. As stated in the corporation act’s section 234, a member of the organization has the rightto apply for an order that is based on the corporation act’s section 233. ApplicationIt was the company’s policy that extended for several years to pay equal and regular dividends toshare holders of the A class category. But, due to certain circumstances, the company deemed thegrandchildren of Galli, lazy and aborted their payments then and there. As clearly mentioned inthe corporations act’s sections 234 and 233, being legal members of the organization, thegrandchildren, can with all rights issue an order under 233 against the organization. It is also seen that the grandchildren’s situation can fall under the various clauses of the section232 which involve discriminatory oppressions. This strengthens the claim of the grandchildrenand hence solidifies their claiming of the order. It was also mentioned in the previous cases thatthe directorial board can in no way breach an already solid contract, hence, making it easier forthe judges to use the section 232 against the directorial board. ConclusionIt is possible for the grandchildren to establish an order and a solid claim against theorganization.
The case of the non-payment of the dividend by grandchildren of Galli_3

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