Reference no: EM133281941

Question: After another year, the success of Five K Pty Ltd is so great that Tom decides to invest some of the profits in developing a helicopter charter business to take hotel guests and other tourists on sightseeing flights. The new business will be a separate division of Five K Pty Ltd. Diana agrees in an email to Tom that this is a good idea, even though it will result in a reduction in the level of dividends that Five K Pty Ltd will generate for the next few years as the helicopter charter business is built up. Kim is incensed. She relies on the dividends from Five K Pty Ltd to fund her very active social life, which she can see being severely restricted if the dividends are not available. She appeals to Diana, but she refuses to see her until the next board meeting, scheduled for 5 months away. Kim sends a letter to Tom in which she says 'This is not what I invested my money for, this is supposed to be a hotel development. You know that I hate helicopters and that I need the dividends to fund my philanthropic activities. You guys are ganging up on me because you resent my public profile and I don't like it.'

Advise Kim on the rights she may have under the Corporations Act, the remedies she might seek and on her chances of success in respect of them.