What the consequence of Waldmart Ltd and its director

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Reference no: EM132113121 , Length: word count:2000

CORPORATE LAW ASSIGNMENT -

The board of Waldmart Ltd proposes to issue bonus shares to existing shareholders as well as increasing the dividend to shareholders to $1.25 cents a share which is a rise of 25% on last year's dividend. It appears that the reason for this generosity to shareholders is that shareholders overwhelmingly rejected the Remuneration Report at last year's AGM and the company received a first strike. The constitution of Waldmart Ltd gives the board the power to issue bonus shares and the board is confident that what they are offering to shareholders by way of the shares and the dividend should please shareholders enough to make the first strike a non-issue at the next AGM. In a separate letter to shareholders the board have set out their views on the justification for the report and the importance of shareholders approving the remuneration report and the reasons for arguing that it was not excessive.

Jim Smith is the manager of Better Super Ltd which holds 4% of the shares in Waldmart Ltd. Jim and a number other shareholders are unhappy with the proposal put by the Waldmart Ltd. Better Super Ltd and the other investors are of the view that the bonus share issue is unnecessary and the increased dividend is most unwise in these unstable financial times.

Required: Better Super Ltd and the other shareholder seek your advice as to the following:

a) Does the board of Waldmart have the power to issue bonus shares and can the shareholders at the upcoming AGM legally compel the board not to issue the share?

b) Can the shareholders stop the directors from increasing and paying the proposed dividend because it is commercially unwise to do so?

c) If shareholders vote against the remuneration report and a second strike is achieved, what will be the consequence of Waldmart Ltd and its director?

The papers will be marked on the following basis:

Criteria -

1. Depth of understanding of the topic and identification of relevant issues.

2. Awareness accuracy of the nature and content of relevant law.

3. Clarity and coherence of the analysis and quality of discussion and argument.

Attachment:- Assignment File.rar

Reference no: EM132113121

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len2113121

9/14/2018 11:44:30 PM

Submission: Essays must be submitted on or before Friday by 11.30pm. No extensions will be considered unless a request is made in writing, before the due date, stating the reason for the request. Marks will be deducted for essays that are submitted after the due date. The assignment should be written in your own words. An electronic copy is to be submitted via the dropbox on Collaborate page for the subject. The Turnitin copy will be the 'time mark' for the purpose of the confirmation of the date and time of submission. Student must put their tutor’s name on the assignment and must not attach the Turnitin report to their assignment.

len2113121

9/14/2018 11:44:24 PM

Presentation - Readable connected prose NOT point form summaries. Accurate spelling, grammar, punctuation, paragraph construction. Proofreading, Effective use of HEADINGS. Consistent and accurate acknowledgment of sources using a recognised style – both in relation to in-text referencing and bibliography (Note the warning about plagiarism below). Format - Typed preferably and double-spaced, Title page with student name and number, Subject code and name, topic, A4 paper, Sequential page numbering, No folders. Assignments must be typed (word processor), using one side of the page only and leaving a wide margin. The word limit is 2,000 words.

len2113121

9/14/2018 11:44:19 PM

Referencing - In law, the preferred referencing style is footnoting. Students are reminded that they will lose marks if they merely reproduce passages copied word for word from texts and other references without attempting to convey information and express ideas in their own words. Of course this does not preclude the intelligent use of relevant quotations in respect of which proper references are given.

len2113121

9/14/2018 11:44:13 PM

Referencing: Footnotes or end-notes must be used to acknowledge the source or sources of information contained in the assignment. Footnotes are preferred, but either will be accepted. In regard to the acknowledgment of references and matters of style and presentation, students are referred to: Australian Guide to Legal Citation – VU Library Homepage. For all referencing questions for your assignment or any legal writing See: Australian Guide to Legal Citation: The VU Library has a 4 page edited version under Information for researchers: Click on Information for researchers and then click on Referencing and then click on Style Manuals. A copy of the Australian Guide to Legal citation is also available on VU Collaborate.

len2113121

9/14/2018 11:44:06 PM

Late Submissions - Students who believe that they have a genuine case for extension of time must lodge a formal written application for such an extension, stating relevant grounds and attaching supporting documentation. Such application must be made at least seven (7) days before the due date for submission. Should the extension be granted then a new deadline will be set. Late submissions of the assignment will incur a penalty mark of one (1) mark per day. Marks may be deducted in respect of essays which are excessive in length. The assignment will have a value of 30% for final assessment.

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