shareholders

Shareholder disputes – the fight for control

Disputes between directors and shareholders of Australian proprietary limited companies (Shareholder Disputes) are common.  The rights and obligations of directors and shareholders of companies are regulated by the Corporations Act 2001 (Cth) (Act) and the standard form “vanilla” constitution (Constitution) based on the Act.  The unfortunate reality is that the Act and the vanilla Constitution are usually insufficiently prescriptive to protect the parties from the conduct of a Director or Director(s) behaving badly. [Read more…]

Do I need financial assistance whitewash?

What is a financial assistance?

The general rule contained in section 260A of the Corporations Act 2001 (Cth) (Act) is that a company may financially assist a person to acquire shares (or units) in the entity if the giving of assistance does not materially prejudice:

  • the interests of the company or its shareholders;
  • or the company’s ability to pay its creditors.

If a transaction is determined to be financial assistance, then shareholder approval and the requirements of section 260B must be complied with.

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