Reference no: EM133472267

IDEA Ltd (IDEA) is a large Australian company listed on the Australian Securities Exchange (ASX). It manufactures and sells ready-to-assemble furniture such as beds, bookcases and desks. IDEA has several hundred members, twenty directors and relies upon a constitution to govern its internal operations. Wilhelm, Simon, Henry and August are all members of IDEA. The company's constitution states that Wilhelm and Simon are to own one hundred shares jointly at all times, whilst Henry and August are to own five hundred shares each. The company's constitution also states that Henry and August are also non-executive directors of IDEA, although only Henry has a separate contract of appointment. IDEA has recently appointed Kristina as its new managing director. Kristina has decided that the company requires a restructure to be able to compete in the post-COVID economy. Several minority shareholders, including Wilhelm, Simon, Henry and August have voiced their opposition to her proposed changes, much to Kristina's disgust. As a result, she announces that the following changes will be made to IDEA's constitution:

• Any members owning less than three hundred shares, whether individually or jointly, will lose their shares without any compensation provided to them;

• Henry will be removed as a director; and

• August will be removed as a director but will keep his shares and be allowed to attend and vote at IDEA's members' meetings and receive dividends. If the proposed changes are passed, advise Wilhelm, Simon, Henry and August of their legal rights. Explain using the law.