Case Study Of Tom Shareholder Of The ABC Ltd †Free Samples

In the given case study, Tom was a minor shareholder of the ABC Ltd. The directors of the company had sold the assets of the company to purchase an island resort in their own names. Therefore, the directors are said to be the controlling shareholders of the company and hence, they will have more rights on the property compared to a minority shareholder[1]. Tom was made aware of these activities at a general meeting and soon after he wanted to take an action against the directors of the company. As per the Company Law , the directors will be held liable if they take such actions by not disclosing it to the existing shareholders of the company. Being a minor shareholder, Tom can claim for his amount of shares that he had invested in the ABC Ltd. As per the guiding rules on Principle 2, individual directors has direct control and right over the company of ABC Ltd[2]. but it is also their responsibility to inform every shareholder of the company about the activities. Therefore, Tom can initiate an action against the directors. As seen in this case study, Flywell Ltd was the owner of an Australian airline. The Flywell Ltd. wished to persuade each investor to invest $10,000 with the company. The company had focused to raise the funds between $9 million and $11 million in new funds. Therefore, a company can raise its fund with the help of five primary methods that are generally used by the corporations[3]. It can issue bonds, put a sale on the common stock, can issue preferred stock, borrow from finance inventories and can put the profits on use. Proportional granting of ownership in the firm is given to the investors in exchange of money. Corporations raise money by this popular method. Therefore, the Flywell Ltd can fund raise the obligations by these primary methods under the Corporations Act. The Board of Directors of Flywell Ltd can purchase extra plains by raising the funds since the company does not have sufficient capital fund[4]. The advice, which the Flywell Ltd. should be given, is that it should u tilize the primary sources for raising the funds. Bà ®gioi, Adrian Doru, and Cristina Elena Dumitru. "The rights of shareholders–basic principle of corporate governance by means of case-specific jurisprudence."  Audit Financiar  14.136 (2016): 401-412. Kshetri, Nir. "Success of crowd-based online technology in fundraising: An institutional perspective."  Journal of International Management  21.2 (2015): 100-116. Matsusaka, John G., and Oguzhan Ozbas. "A theory of shareholder approval and proposal rights."  The Journal of Law , Economics, and Organization  33.2 (2017): 377-411. Womack, James P., and Daniel T. Jones.  Lean solutions: how companies and customers can create value and wealth together. Simon and Schuster, 2015.