kiaconchim
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I got this case and I'm completely confused. Anyone could help me state out the laws should be applied to this case? Is there anything relates to Director's duties?

Thanks

Puissant Rose Enterprises Pty Ltd is a company limited by shares. The share capital of the company is divided into 100,000 shares. Annie, who is a rogue, is managing director of the company and holds 70,000 shares. Jean owns 10,000 shares and the remaining 20,000 shares are widely disseminated. The company’s objects are stated to be to own property and to stock-pile ham.

Because it needs to expand its business, the company wishes to buy new premises. Annie discovers, by rifling through secret company files relating to possible locations, that a suitable site is being offered for sale by Nick. Annie buys the site for $200,000. She then transfers it to the ownership of a company in which she holds all the shares, Mala Fides Pty Ltd.

Annie then tells the board of the company that the site is available from Mala Fides Pty Ltd for $500,000. Jean opposes the sale, saying that the price is inflated. Annie and Greg, the other member of the Board of Directors and under Annie’s control, approve the purchase. Jean then demands that the matter be resolved by the General Meeting. The Board refuses to call a general meeting and the purchase is approved. Annie then decides the company should commence business as a theatrical entrepreneur and the Board also approves this.

Disillusioned, Jean now wishes to recover as much as possible of her investments. The market for shares is low and there are no buyers for shares in Puissant Rose Enterprises Pty Ltd.

Advise Jean as to the courses of actions available to her.Puissant Rose Enterprises Pty Ltd is a company limited by shares. The share capital of the company is divided into 100,000 shares. Annie, who is a rogue, is managing director of the company and holds 70,000 shares. Jean owns 10,000 shares and the remaining 20,000 shares are widely disseminated. The company’s objects are stated to be to own property and to stock-pile ham.

Because it needs to expand its business, the company wishes to buy new premises. Annie discovers, by rifling through secret company files relating to possible locations, that a suitable site is being offered for sale by Nick. Annie buys the site for $200,000. She then transfers it to the ownership of a company in which she holds all the shares, Mala Fides Pty Ltd.

Annie then tells the board of the company that the site is available from Mala Fides Pty Ltd for $500,000. Jean opposes the sale, saying that the price is inflated. Annie and Greg, the other member of the Board of Directors and under Annie’s control, approve the purchase. Jean then demands that the matter be resolved by the General Meeting. The Board refuses to call a general meeting and the purchase is approved. Annie then decides the company should commence business as a theatrical entrepreneur and the Board also approves this.

Disillusioned, Jean now wishes to recover as much as possible of her investments. The market for shares is low and there are no buyers for shares in Puissant Rose Enterprises Pty Ltd.

Advise Jean as to the courses of actions available to her.
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