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There are 3 shareholders in DFK Pty Ltd; Mr Gam, Mr Dam and Mrs Tam. Mr
Gam holds 20 ordinary shares.
Mr Dam holds 150 ordinary shares and 20 A-class shares
Mrs Tam holds 300 ordinary shares and 50 A-class shares. Mrs Tam is also DFK's sole director and secretary.
Mr Gam wants to sell his shares in DFK Pty Ltd because he finds Mr Dam and Mrs Tam to be very hostile towards him. Mr Gam claims that Mrs Tam had told him she "would never pay any dividends to ordinary class shareholders!"
Question: answer both a and b
a). What remedy might Mr Gam seek against DFK? List the relevant section/s from the Act.
b). What obstacle do shareholders in proprietary companies often face when wanting to "sell out" of hostile proprietary companies?
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