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What commercial action can the shareholders of FUEL Ltd take

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Reference no: EM132880035

Question - The shareholders of FUEL Ltd., a company formed to operate 200 service stations, are concerned that although the company has been making a profit of 15% on shareholders' funds (averaging $3 million for the past 2 years), they have not yet been paid a dividend. The directors contend that the profits are required to build up working capital.

Can the shareholders of FUEL Ltd take action to force the directors to pay a dividend?

What if the directors of FUEL Ltd were paying ALL the profits out as dividends to the shareholders?

What commercial action can the shareholders of FUEL Ltd take in either situation?

Reference no: EM132880035

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