Law
Question 1
Susan is a 25% shareholder of Rich Pty Ltd. Rich has not paid a dividend to its shareholders for the last 3 years. Susan is unhappy with the board’s refusal to pay a dividend and believes that as a
shareholder she deserves better and that she has the right to receive a distribution of the company’s profits. No reason has been provided by the board as to why it is refusin" rel="nofollow">ing to pay dividends.
Susan is unsure of the company’s fin" rel="nofollow">inancial position but thin" rel="nofollow">inks that the company can afford to pay dividends.
Required:
Advise Susan as to what she could do.