Ask Question, Ask an Expert


Ask Business Law & Ethics Expert

Decorate Ltd (Decorate) is a large office interior design company which has ordinary shares only, 
listed on the Australian Stock Exchange. The majority of shares in Decorate are owned by Colour Ltd 
(Colour), who holds 85%. The remaining shares are held by Light Pty Ltd (Light)who holds 11%, Bright 
Ltd (Bright) who holds 3% and Julie McMahon, who holds 1%. 
Decorate has a brief constitution which states that the company will employ Julie McMahon as 
company solicitor. The constitution states that all other matters are to be dealt with under the 
replaceable rules in the Corporations Act. 
At a recent shareholder meeting, Colour indicated it would like to increase it's shareholding in 
Decorate to 100%. The directors of Decorate agree and believe it will result in large tax and 
administrative savings for Decorate. The directors of Decorate have also become aware that Light, 
originally an interior design company specialising in residential design, has recently established a 
new company, Office Design Pty Ltd (Office). Light owns 100% of the shares in Office and the new 
company specialises in interior design for offices. The directors of Decorate believe that Office is in 
direct competition to Decorate and are concerned. 
To assist Colour in gaining 100% ownership, the directors of Decorate propose a change to 
Decorates constitution as soon as possible, allowing the majority shareholder (Colour) to 
compulsorily acquire the shares of the minority shareholders (Light, Bright and Julie). It is proposed 
that Decorate will provide detailed information relating to the constitutional amendment to all 
shareholders. In addition, an independent valuer will assess a range of matters, including market 
value, to ensure a fair share price for the minority shareholders. 
Bill, the managing and sole director of Light indicates that he will not support the amendment and 
Light will take legal action against Decorate to stop the amendment if necessary. He asks the other 
minority shareholders (Bright & Julie) to join him in the legal action. 
Tony, the managing director of Bright tells Bill he and his board will not support the amendment to 
the constitution and will join in the legal action. However, the shareholders of Bright disagree and 
have repeatedly expressed their desire to sell the shares in Decorate and believe the amendment to 
the constitution is a good opportunity to do so. 
Julie McMahon informs Bill she is not sure if she supports the amendment or not. She is having 
financial difficulties and would like to sell her shares in Decorate but is concerned if she does, she 
can no longer rely on the clause in the constitution stating she is the company solicitor. 
With reference to legal authority discuss the legal implications for Decorate Ltd, Colour Ltd, Light 
Pty Ltd, Bright Ltd and Julie McMahon. 
The parties involved DO NOT require any information on statutory member remedies or takeovers 

Required minimum-1 page

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
  • Reference No.:- M948539

Have any Question? 

Related Questions in Business Law & Ethics

Business law discussion postwhat are the principal

Business law discussion post What are the principal differences between stocks and bonds? What are the risks associated with investing in stocks and bonds? Which of these classes of securities is riskier? Explain.

Need apa paper with the following guidelines due by sept

Need APA paper with the following guidelines, due by Sept 24th10AM PST 1,500 word paper in which you identify past, present, and future trends relating to high-tech crime in the relationship between the components of cri ...

Deliverable length 3-5 pages community policing and

Deliverable Length: 3-5 pages Community policing and terrorism do have a significant link in terms of allowing for the flow of information to occur. Police organizations can establish relationships and trust with communi ...

Consider the chapter 6 materials on both private property

Consider the Chapter 6 materials on both private property and environmental justice, in the context of what you know about natural gas fracking and global climate change. (If you are not familiar with these issues, pleas ...

The purpose of this assignment is to compare and contrast

The purpose of this Assignment is to compare and contrast the current dominant approaches to crime prevention. Through this assignment, you will examine approaches used by the three components of the criminal justice sys ...

Imagine you own springfield arms apartments a business that

Imagine you own Springfield Arms Apartments, a business that rents primarily to students. One evening, your tenant Sharon is attacked by an intruder who forces the lock on the sliding glass door of her ground-floor apart ...

Legal research methods assessment tasks-the adversarial

LEGAL RESEARCH METHODS ASSESSMENT TASKS- 'The adversarial process inhibits judicial creativity. Courts are not Law Reform Commissions. They do not select the questions they will decide; and in general they do not gather ...

Graph a phillips curveexplain why the long run phillips

Graph a Phillips curve. Explain why the long run Phillips curve is vertical. Could there be more than one short- run Phillips curve.

Create a 10- to 17-slide microsoft powerpoint presentation

Create a 10- to 17-slide Microsoft PowerPoint presentation, with speaker notes, on the topic of science and the detective. Include the following in your presentation: Describe the forensic characteristics of document exa ...

Briefly describe at least four major elements of a

Briefly describe at least four major elements of a comprehensive construction safety program.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate