LA4106 Final: Advanced Company Class Notes
Document Summary
Principal focuses: shareholders: their rights and powers, enforcement actions, insolvency, alteration of constitution, ratification, derivative action, representative action and class action, minority buyout, unfair prejudice, amalgamations, takeovers. Three groups of people that are important: shareholders, directors, creditors. Solomon: can be a shareholder, director, creditor all at the same time. Lees air farm: employee and a shareholder multiple capacities. Shareholder bears the ultimate risk, primarily motivated by economic concerns. Such lending can be secured or unsecured this is a matter of contract. Employees can be thought of as creditors in some situations. In some cases, the shareholders can directly tell the directors what to do, in others the directors have a tremendous amount of autonomy. Small companies vs big companies the situation often changes. Shareholders supply risk capital to the company, usually in the form of money. If things don"t go right, you won"t get it back creditors have a contractual right to get their money back, but shareholders don"t.
