Accounting

Content Key facts.2 Parties.2 Issues..2 Rules...2 The common law rules.....3 Corporations number 2001.....3 finishing.....4 Conclusion..4 Reference List.5 Textbook...5 Table of command..5 Key Facts: Tazie Fazie Homes Ltd is considering restructuring its operations, and perhaps diversifying into industrial cleaning. This bon ton has a on the whole owned subsidiary lily-white Bean Pty Ltd which has made a profit of $300,000 this financial year. The association will make a profit of $750,000 this year. The 60 sh arholders substantiate not been paid a dividend last two years. The managing film director contends that the profits this year be required to build up working capital. Parties: Tazie Fazie Homes Ltd The managing director Brent Issues: * Is thither any legal action the shareholders can do to legions the director to allowance a dividend?

* If the director does decide to fabricate all profits bring out as dividend, could the shareholders do anything to prune or pr even sot the compensation of these dividends? * Is the director required to net profit a dividend and if so what tote up should be paid and wherefore? Rules: Generally, there is no bylaw that requires the directors to pay a dividend, subject to what the conjunctions constitution sets. The companionships constitution may have quite uncontaminating rules on dividend payment; the directors must follow this, as variance 140 provides that the constitution is a statutory contract. There are almost cases that give counselor-at-law: 1. Burland v Earle [1902 ] shareholders do not have the power to ta! ke in a dividend from directors even if the company is profitable. 2. Sanford v Sanford Courier 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: OrderCustomPaper.com

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