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Question: CORPORATE LAW ASSIGNMENT

In March 2015 the Corporations Legislation Amendment (Deregulatory and Other Measures) Act 2014 (Cth) came into operation and amended s249D of the Corporations Law by removing the '100 member rule' in relation to shareholders calling a general meeting of the company.

The removal of the 100 member rule has been welcomed by the business community. At the same time Senator Nick Xenophon and others gave dissenting reports to the Senate committee considering the legislation and suggesting that the removal of the 100 member rule did not enhance shareholders rights and good corporate governance.

Required:

1. Explain why the 100 member rule was introduced in 1981.

2. Explain the process whereby 100 members could call a general meeting of the company under s249D prior to its amendment

3. Analyse and discuss at least two case examples of where shareholders have used s249D

4. Do you consider the amendment of s249D and the removal of the 100 member rule will have a positive or negative impact on shareholders' rights and good corporate governance?

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