Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Corporate Finance Expert

problem 1: Member’s rights and remedies

GML owns 92% of the issued shares in Explorer Ltd. The remaining 8% of the shares are held by five individuals, including a Mr Owen who owns 0.5% of the issued shares. Mr Owen is a high profile individual who has at times been critical of the Chinese government’s activities in the South China Sea. GML is concerned that its ongoing association (through Explorer) with Mr Owen may harm its relationship with its Chinese customers.

At a meeting of Explorer, a resolution is passed amending the constitution of Explorer, to allow any member who was entitled to at least 90% of the issued shares of Explorer to acquire compulsorily, the shares of any other member at a price of $20.00 per share. Explorer shares have recently been valued by an independent expert at $15.78. Mr Owen does not attend this meeting and the majority shareholder (GML) does not vote. The resolution is passed unanimously by the four other minority shareholders.

Mr Owen is challenging the validity of the amendment. Will his challenge succeed?

problem 2: Director’s duties

JV Mine Pty Ltd is 50% owned by GML. In 2009, GML was approached by QMNE Ltd, the other shareholder in JV Mine, to make a further major investment in JV Mine, to enable it to develop a new copper mine.

The then directors of GML delegated to others, including a geologist, the task of obtaining the technical information about the amount of copper that might be able to be mined. The report prepared for the directors indicates that the proposed investment in the mine should be very successful. Queried by his fellow directors about the optimistic forecasts, Mr Chester (who has a geology qualification) assures them that all appears to be in order.

However, some of the information has been negligently prepared. This means that, when the directors rely on the report and invest GML’s funds in the mine, the investment will not be as successful as the report indicates. Have the directors of GML (or any of them) breached their duty of care?

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M99479

Have any Question? 


Related Questions in Corporate Finance

Capital budgeting techniquesas a financial consultant you

Capital Budgeting Techniques As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a ...

Assignmentpart 1question 1 in the united states which of

Assignment Part 1 Question 1. In the United States, which of the following types of organization has the greatest revenue in total? a. Sole proprietorship b. C corporation c. S corporation d. Limited partnership Question ...

1 you are in charge of preparing a comprehensive budget for

1. You are in charge of preparing a comprehensive budget for your firm. Indicate how financial ratios can help determine an acceptable comprehensive budget. 2. List four popular forms of graphs used by accountants. 3. Li ...

Identify facial expressionsfind a partner and take turns

Identify facial expressions Find a partner and take turns telling each other a three-minute story. When each of you tells your story, try to exaggerate, as if you were on stage and telling the story to a live audience. A ...

The purpose of this exercise is to familiarize you with the

The purpose of this exercise is to familiarize you with the wide variety of personal finance resources on Yahoo!. Go to finance.yahoo.com/personal-finance. a. Determine how inflation and taxes will affect your investment ...

Evaluate a business meetingattend a business meeting at

Evaluate a business meeting Attend a business meeting at work, a city council meeting in your community, a student organization meeting at school, or some other meeting. Observe the meeting and evaluate how well the faci ...

Selecting a cd casey has 1000 to invest in a certificate of

Selecting a CD . Casey has $1,000 to invest in a certificate of deposit. Her local bank offers her 2.5% on a 12-month FDIC-insured CD. A nonfinancial institution offers her 5.2% on a 12-month CD. What is the risk premium ...

Write an email about a pending lawsuit against the

Write an email about a pending lawsuit against the company. Imagine that you're the CEO of a chain of retail stores. Last week, you received notifi - cation of a lawsuit against your company. An employee who was terminat ...

A british firm will receive 1 million from a us customer in

A British firm will receive $1 million from a U.S. customer in three months. The firm is considering two strategies to eliminate its foreign exchange exposure. The first strategy is to pledge the $1 million as collateral ...

Financial statement analysisprepare an eight- to ten-page

Financial Statement Analysis Prepare an eight- to ten-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on the f ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen