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Problem:
Central Property Pty Ltd owns certain property. It is approached by Land Ltd which offers to buy the property at a good price in the current market conditions. The shareholders of Central Property Pty Ltd want the company to sell the land and pass a resolution requiring that the land be sold. However, the Board of Directors refuse to sell the property. Advise the directors whether they are bound to implement the shareholders resolution.
Additional Information:
This question belongs to the Law as well as it explains about the scenario where the company is approached by another company which asks to sell some of its property. The shareholders pass the resolution but the directors refuse to sell the property. The question is whether the directors have to obey shareholders.Total Word Limit: 99 Words
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